AGENDA ITEM NO
SOCIAL AFFAIRS, HEALTH & HOUSING SCRUTINY COMMITTEE
13 SEPTEMBER 2006
REPORT FROM CHIEF HOUSING AND PUBLIC PROTECTION OFFICER
SOCIAL HOUSING GRANT BID SUBMISSION PROCESS AND IDENTIFICATION
OF HOUSING PRIORITIES TO INFORM 2008/09 PROGRAMME
PURPOSE OF THE REPORT
To inform Members of the application criteria for Social Housing Grant, as laid down by the Welsh Assembly Government. To endorse the established strategic housing priorities for Wrexham and to approve the identification of appropriate schemes to meet these priorities.
INFORMATION
1. Social Housing Grant is a funding mechanism and opportunity through which the local authority can facilitate and enable other housing organisations (namely Registered Social Landlords) to provide new and additional affordable or social housing.
2. In Wales Social Housing Grant is only available to Registered Social Landlords (otherwise known as Housing Associations) and is awarded by the Welsh Assembly Government directly to these organisations on the basis that scheme proposals meet and accord with identified strategic aims and needs within the local authority area. Social Housing Grant is a capital only grant which when combined with financial contributions from the Registered Social Landlords (RSL’s), is used to fund the costs associated with the provision of new build affordable accommodation or the refurbishment of suitable existing accommodation for affordable use.
3. The Social Housing Grant Programme is co-ordinated in partnership by the Council’s Housing and Public Protection Department together with the RSL’s that operate in Wrexham. The award of Social Housing Grant is often the only way in which RSL’s can deliver new affordable housing in order to meet the accommodation needs of residents across the County Borough. The delivery of this type of accommodation underpins a number of the Council’s strategic aims including providing support to vulnerable people in their own homes and improving the health, social care and well being of people within Wrexham.
4. In July 2004 the Welsh Assembly Government issued a consultation paper to Local Authorities and RSL’s. This document identified ways in which the allocation and award of Social Housing Grant could be improved and recommended better joint working and forward planning. Following formal consultation the subsequent approved guidance required a move to a 3 year forward programme of Social Housing Grant funded schemes.
5. The significance of this was the move away from Local Authorities receiving a pre determined level of Social Housing Grant calculated by The Welsh Assembly Government to an open bid round based upon certain key criteria.
6. This open bid system is now dependant upon Local Authorities and their partner RSL’s being able to supply evidence of need and more importantly deliverability. Therefore in order for Social Housing Grant bids to be considered successful they need to be supported by specific and key elements including clear identification of:
· The location of proposed schemes,
· Estimated costs,
· Land ownership,
· Land acquisition dates (if applicable)
· Key dates for planning consent,
· Start & completion dates (construction)
· Evidence of need
· Contribution to broader strategies.
7. WAG guidance is therefore clear that although Local Authorities and their partner RSL’s may submit as many bids for Social Housing Grant as they wish, unless these bids are accompanied by reassurances that each scheme will actually be delivered (list above), then it is extremely unlikely that proposals would be awarded funding. In the last round of Social Housing Grant bid submissions, the overall number of schemes and associated grant requirement for bids in Wrexham totalled over £1.78 million in 2006/07 and £2.82 million in 2007/08. This level of programming far exceeded the level of Social Housing Grant previously awarded to Wrexham but was typical of the funding requests across Wales with WAG receiving over £300 million worth of bids for the 2 year period. However despite this submission, Wrexham and its partner RSL’s were only successful in attracting £900k of Social Housing Grant for 2006/07.
8. If therefore Wrexham County Borough Council and its partner housing providers wish to attract and secure additional Social Housing Grant funding then the identification and future supply of both land and sites (both private & public sector) is critical.
9. The priorities for housing in Wrexham have been identified through extensive research and consultation. Priorities for housing in Wrexham are represented in a number of the Council’s key strategic documents and plans including:
Local Housing Strategy Statement (2004 – 2009)
Social Care Plan (2002 – 2007)
Health, Social Care and Well Being Strategy
Homelessness Strategy
Children & Young People’s Framework
Unitary Development Plan
Wrexham Refreshed – Community Strategy
Supporting People Operational Plan
Housing Needs Assessment (March 2006)
10. The identified housing priorities for Wrexham are therefore:
· Homelessness
· Affordable Housing (General Needs)
· Accommodation for Older People
· Meeting the accommodation requirements for vulnerable people
11. Therefore the consideration of all bids submitted to the Assembly will need to address and meet these identified strategic housing priorities. The proposed bid detail is attached at Appendix 1.
Accommodation and Housing Support Strategy for Older People
12. In consultation with colleagues within the Housing and Public Protection Department, Social Services, senior officers from the Council’s partner Registered Social Landlords and in reference to key documents (including the, Social Care Plan, Health, Social Care and Well Being Strategy, Local Housing Strategy and Draft Accommodation and Housing Support Strategy for Older People in Wrexham) a key priority extra care housing scheme has been identified in order to better address both the housing and support needs for Older People in Wrexham.
13. The draft Accommodation and Housing Support Strategy for Older People (AHSSOP) identifies the need to “enable older people to have access to a wider variety of quality accommodation, care and support services”. Consultations with Older People in Wrexham and elsewhere have confirmed that older people want to be able to maintain their independence by remaining in the home of their choice for as long as possible.
14. A key recommendation within the draft AHSSOP is to develop extra care housing within the borough. Extra care housing describes a type of supported housing that falls somewhere between traditional sheltered housing and residential care. Extra Care housing offers an environment in which care and support are provided by an on-site team, but where an independent lifestyle can be retained as far as possible. A full range of communal facilities are also available. Currently Wrexham has only 2 accommodation based schemes which offer additional facilities and support (Royal Court, Gwersyllt & Springfield, Rhosddu), both managed by the Housing Service. It is recognised that this model of accommodation and support provision is most appropriate and capable of meeting the needs and aspirations of older individuals by offering a home for life with support available at varying levels dependent upon particular needs.
15. The provision of such purpose built accommodation in Wrexham would allow individuals to remain in their own accommodation in a community based environment and represents significant benefits for the individuals. This type of accommodation based provision also presents potential significant cost savings to the Council, more-especially to current Social Services budgets as the model provides a cost effective alternative to residential care by enabling people to continue to live in the community for longer.
16. The Social Housing Grant programme provides an opportunity to bid for and attract a significant amount of external funding specifically for the purpose of providing extra care accommodation. The Welsh Assembly Government has, as part of its implementation of the Wanless report ring-fenced £20 million via the existing Social Housing Grant programme for the development of extra care housing. This money is only available for 2008/9.
17. Development opportunities for extra care housing schemes are typically limited by physical site constraints including site topography, proximity to local services and public transport, integration with existing communities and they must also be of a scale capable of supporting a minimum number of 40 self contained units and associated facilities (due to viability). A number of potential development sites have been considered across the County Borough including the remodelling of existing sheltered schemes, the investigation of opportunity sites via the market and the consideration of any other assets owned by the local authority or its partners. Unfortunately however due to a combination of factors including viability, costs associated with decanting residents and unsuitable sites no options are currently available to the Council which are capable of meeting this timescale.
18. In order to attract this capital money local authorities are required to demonstrate their commitment to delivery by clearly identifying proposals including the location, ownership and disposal / development plans to support their application. Unfortunately and despite consideration of a number of development sites and existing assets officers have not been able to find a suitable site. However the bid is presented within the SHG programme for consideration as this is still recognised as a priority need for Wrexham.
RECOMMENDATIONS
a) Members are asked to consider the identified strategic housing priorities for Wrexham.
b) Members are asked to consider the bids for Social Housing Grant funding for 2008/09.
BACKGROUND PAPERS
None
WEBSITE INFORMATION
None
CHPPO/96/06S
Table 1Priority / Address / Client Group/ Strategic Theme / Units / Unit Mix / £k 2008/09 / RSL / Consortium
1 / Wilson Avenue / Vulnerable People / 1 / 1 x 3 + 1 bung / Syniad
2 / Site not identified* / Extra care* / 50 / 35 x 2bed
15 x 1 bed / £5,007,835 / Syniad
3 / Wrexham Road Rhostyllen / Affordable Housing / 18 / 15 x 2bed
3 x 3 bed / Syniad / Undod
4 / King Street (Acrefair) / Affordable Housing / 8 / Syniad
5 / Daniels Drive, Ruabon / Vulnerable People / 1 / 1 x 3 + 1 bung / Undod
6 / Homebuy / Affordable Housing / 10 / Existing / TBA
7 / Empty Properties / Homelessness / 10 / Existing / TBA
8 / Former Gas Works, Rivulet Road / Affordable Housing / 10 / 10 x 2 bed / £516,000 / Undod
9 / Site not identified* / Vulnerable People* / 1 / 1 x 3 + 1 / TBA
Total / 109
* Schemes which have been identified as housing priorities but have no associated and confirmed sites / development land are extremely unlikely to receive grant funding
Note
The Syniad Consortium includes Clwyd Alyn Housing Association, and Wales and West Housing Association.
The Undod Consortium includes Tai Clwyd Housing Association.
Development Consortia
In 2005 WAG amended the way in which Social Housing grant was awarded. Part of these amendments included the requirement for Registered Social landlords to work together more collaboratively in what is termed “Development Consortia”. In Wrexham there are 2 Development Consortia:
· Syniad - which includes Clwyd Alyn & Wales & West
· Undod - which includes Tai Clwyd & First Choice
The function & advantage of Development Consortia is that a pool of resources including development staff will be available and this should increase the capacity for individual organisation to deliver affordable housing.
These individual associations now work together much more closely.
Scheme Explanations – 2008 / 09
Wilson Avenue, off Holt Road
A small vacant plot of land at the head of an existing residential street. The disposal of this plot has been agreed through the Development Liaison Group, Asset Management Group and Executive Board. The first element of SHG will be claimed in 2006 / 07 with an application made for the residual amount in 2008 / 09.
Extra Care
Currently no site identified. Officers have looked at a number of existing schemes in and around Wrexham as well as approaching land owners. The success and viability of this type of scheme is dependent upon both a favourable location but also likely to be at a subsidised land value (as per other LA areas).
Wrexham Road, Rhostyllen
An allocated site in the UDP, this site is being promoted by the National Trust. Affordable housing is being secured via the affordable housing policy and an element of the required affordable housing will require capital grant funding.
King Street, Acrefair
A private development site with part of this site presented to a Registered Social Landlord to develop as affordable housing. This site is not subject to the affordable housing policy but has existing planning permission.
Daniels Drive, Ruabon
A small area of land forming part of a larger site located on the edge of the existing settlement. The disposal of this plot has been agreed through the Development Liaison Group, Asset Management Group and Executive Board.
Homebuy
Capital grant is used to enable individuals to access the property ladder. The grant is available to individuals through an interest free loan worth up to 30% of value of the property. This element of grant is repayable upon any subsequent sale and is returned back to the Welsh Assembly Government.
Empty Properties
A bid used to enable RSL’s to target specific long term empty properties and return them to use. Similar schemes operate across the country and the Council will be looking to try and return a number of empty properties to use via leasing arrangements with the RSL’s.
Former Gas Work Site, Rivulet Road
A current application with the council this bid forms part of a larger market led scheme. The affordable housing will be secured via the UDP policy.
Vulnerable People
A single unit scheme identified and prioritised by Social Services for a family currently housed in unsuitable accommodation and currently in receipt of 24 hour care with no sleep-in facilities for carers. An existing property in the Johnstown/Rhos area is required.