The project commenced on 29th January 2008.

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1 Agenda Item No 13 Update on the Low Cost Housing Project : February 2009 Housing Enabling Officer Summary: Conclusions: This report provides Members with an update on the Low Cost Housing project (LCHP), and an overview of the challenges faced when delivering a project of this nature. Affordable housing schemes on exception sites are long term projects; it can take up to 42 months to deliver a scheme from concept to handover of keys. Wherever possible, officers work to deliver schemes quicker than this, but there are a numbers outside officers control that can often delay progress. Cabinet member(s): Derek Blake Contact Officer, telephone number, and The project commenced on 29th January Ten Parish Councils are currently fully engaged in the LCHP. The LCHP complements our existing methods of delivering local needs affordable housing in rural villages; schemes are also being progressed with other RSL partners in a number of rural villages. There are misunderstandings and preconceptions about affordable housing at the local level both within local communities and Parish Councils. Local Members can play a key part in helping to explain the benefits of affordable housing and calm local concerns: member support will help ensure the success of both the LCHP and the delivery of local needs affordable housing generally. Following the recent comprehensive budget review, the capital budget funding this (and other local housing needs projects) has been re-profiled across the next three financial years. The budget allocation for the first two years has already been fully committed. The project agreement is due to be reviewed in March Ward(s) affected: All Abigail Dennington-Price dennington@s-norfolk.gov.uk Page 1

2 1. Background 1.1 The concept of the Low Cost Housing Project arose in summer 2007 as part of the new corporate objective to Innovate and deliver low cost housing for local people. The aim was to deliver a handful of new homes for social rent in our rural parishes. It was envisaged that the project would be led by local Parish Councils, keen to facilitate the delivery of new affordable housing in their parishes. 1.2 To deliver the project a local Housing Association with development capabilities needed to be appointed as Lead Delivery Partner. Following a comprehensive bidding and assessment process (bids were received from five local Housing Associations) Saffron Housing Trust was selected as lead partner in October The appointment was made on the basis that progress would be reviewed after one year, at which time the merits of introducing a further partner would be considered. Saffron entered into a legal agreement underpinning the project, which included a Partnership Protocol detailing what was expected of both partners to successfully deliver the project. (A copy of the Partnership Protocol is attached at Appendix H). As part the agreement Saffron agreed to appoint a dedicated, full-time officer to the project. 1.3 In July 2007 the Cabinet agreed to the release of capital funding to part-fund the delivery of the project on the basis that Saffron Housing Trust would also commit funding to the project. As actual development costs are scheme specific it is not possible to state the exact amount that Saffron will contribute to each scheme, however the estimated ratio will be: 50% Saffron funding, 35% Housing Corporation funding, 15% SNC funding. 1.4 The scope of the project was developed during the remainder of 2007 (there were a number of technical housing and planning issues to consider and resolve), and the project was officially launched on 29th January A Project Team and a Project Board have been appointed to implement and oversee the delivery of the project (membership of both each can be found at Appendix A). Terms of Reference have also been produced for the Project Board (a copy can be found at Appendix B). 1.6 A fundamental principle of the project is ensuring schemes are of enhanced quality of design, including reducing the impact of construction/new housing on the environment. To achieve this an independent Design Review Panel (similar to that appointed for the Annual Design Awards) has been appointed, and homes will be built to standards that are above the current statutory requirements for affordable housing. Page 2

3 1.7 This report has been produced at the end of January 2009, 12 months after the launch of the project, to: (a) report on progress to date; (b) highlight the various delivery challenges and issues the project faces; (c) present a number of recommendations for Members to consider. 1.8 It should be noted that the Low Cost Housing Project is one of a number of methods of delivering new affordable housing in our rural communities. A number of schemes were already being progressed before the LCHP was introduced, and these are detailed in Appendix F m capital funding has been allocated to deliver local-needs affordable housing over the forthcoming three financial years. The 2m has been equally split between the LCHP and other local-needs affordable housing schemes, and profiled as: , ,200, ,000 Total 2,000,000 The budget profiled for and has already been fully committed The LCHP has recently been included within an overall Audit of the delivery of Affordable Housing at South Norfolk Council. The one medium and one low priority recommendation in the audit that have implications for the LCHP have been addressed. 2. Decision Sought That Members: 2.1 Acknowledge the progress the LCHP has made to date, and consider how the profile of the project can be raised at the local level. Page 3

4 3. Proposal and Reasons 3.1 The Low Cost Housing Project will deliver rural affordable housing under the Exceptions Site Planning Policy (HOU 13). Affordable housing projects delivered in this way require a considerable amount of detailed preparation and planning to be completed before any homes can be built. Identifying and securing suitable sites can often take months of investigative and negotiation work, whilst it is not unusual for schemes to be discontinued or work repeated for a variety of technical reasons. Key reasons for discontinuing schemes include: (i) sites deemed suitable in principle for development subsequently prove unviable due to either technical planning constraints (highways issues etc) or the findings of topographical/ecological surveys; (ii) landowners not being prepared to release suitable sites (after first indicating they would be); and (iii) landowners making unrealistic demands well into a project, which the prevents a scheme from progressing any further. 3.2 It is often impossible to second-guess landowners and their intentions and foresee the hidden difficulties a site may hold. These factors need to be kept in mind when evaluating project progress. 3.3 Appendix D shows a timeline for a typical affordable housing delivery schedule, showing each stage in the delivery process and how long on average each stage takes. Appendix E contains a timeline showing actual progress and position to date on the individual schemes being progressed under the LCHP. 3.4 Based on our experience from other similar projects, it is not uncommon for the preparation and planning stage of an exception site development to take 18 months, and during this time very little of the work being undertaken has any obvious output in terms of new houses being built. Draft layouts/elevations of proposed housing schemes are usually produced at around 14 months into a project. 3.5 Capital expenditure on this particular project will be incurred when Saffron confirms that building work will commence on a site. It is anticipated that it will be late 2009 before the first scheme reaches this stage. 3.6 Another factor affecting delivery of new affordable housing is opposition and sometimes prejudice - towards this type of housing (or more specifically the people who live in it ) within local communities. There have been cases of Parish Councils being unwilling to support affordable housing, or withdrawing from a scheme they had originally supported when faced with local pressure. Officers work on a daily basis to clarify and dispel the misconceptions about affordable housing and members have a key role in this. Sustained Local Member championing of both affordable housing, the people who live in it, and the LCHP will help ensure the long-term success of this project. Page 4

5 3.7 We currently have 10 Parish Councils fully engaged in the project. Provided suitable sites can be secured and developed in those 10 villages, we have the potential to deliver in the region of 50 new affordable for these rural communities through this project. (A list of the Parish Councils who have fully engaged can be found at Appendix C). It is hoped that further Parish Councils will continue to engage in the project as it moves forward. 4. Relevant Corporate Objectives 4.1 To Innovate and Deliver Low Cost Housing for Local People. 4.2 Preserve the Special Character of our Market Towns and Villages 5. Implications (Risk, Financial, Legal, Environmental, Climate Change, Equalities, Biodiversity and Crime Reduction) 5.1 Positive Implications Should progress continue apace, it is fully expected that a number of new low-cost homes will have been delivered across a number of our rural parishes at the end of the project lifecycle (late 2011). This will lead to: a reduction of households on the Housing Register; an increase in the number of households living in homes that meet their needs; increased and/or maintained sustainability of our rural villages. 5.2 The above will in turn directly contribute to the following Local Area Agreement Designated Performance Indicators: Indicator 3.1 (NI 154) Net Additional Homes Provided (Affordable homes delivered in our rural villages under the Exceptions Site planning policy will all be in addition to those provided via normal planning routes (Section 106 Agreements)). Indicator 3.2 (NI155) Number of Affordable Homes Delivered (gross) (Affordable homes delivered in our rural villages under the Exceptions Site planning policy will underpin this Indicator (particularly in the current climate, where affordable housing on larger Section 106 development sites is expected to fall dramatically over the next months)). Indicator 4.1 (NI 186) Per capita reduction in CO2 emissions in the LA Area (New affordable homes delivered under the LCHP will be built to standards above the current requirement; most will include elements of sustainable building and energy technologies, all of which will reduce CO2 emissions in terms of construction and future use). Indicator 5.2 (NI 4) Percentage of people who feel they can influence decisions in their locality (We are hoping that the engagement of Parish Councils in the LCHP will have a positive effect on this indicator). Page 5

6 5.3 Successful delivery of both the LCHP and our other local needs affordable housing schemes will also contribute to the following objectives within our Sustainable Community Strategy: Provide more than 700 affordable homes across the District, including a small number of new affordable homes for rent in villages where priority is given to local people. (Three Year Goal); A supply of affordable homes that meets need. (Ten Year Vision) A Housing stock that meets the changing needs of residents, and ensures low levels of homelessness in our District. (Ten Year Vision). 5.4 Risk A comprehensive risk assessment has been carried out for the project and subsequently reviewed at appropriate intervals. A copy can be found at Appendix G. 5.5 Financial The existing capital budget allocation for rural local-needs affordable housing ( 2m) should be maintained to ensure the delivery of new local needs affordable housing. 5.6 Legal The homes will be protected, ensuring they are available first and foremost to local people who are in housing need, via an underpinning legal charge on each home. 5.7 Environmental / Climate Change New affordable homes delivered under the LCHP will be built to standards above the current government requirement; most will include elements of sustainable building and energy technologies, all of which will reduce CO2 emissions in terms of construction and future use. 5.8 Equalities The LCHP will provide opportunities for households in housing need to remain living in their local communities / rural villages. 5.9 Biodiversity Planning applications for proposed affordable housing will need to demonstrate how damage to the local biodiversity has been assessed, mitigated and improved Crime Reduction Proposed affordable housing developments require the input of the Police Architectural Liaison Officer and the relevant principles of Secure by Design to be applied. 6. Conclusion 6.1 Conclusions are made at the beginning 3 of this report. Page 6