Housing Investment Plan

Louise Dwelly

Strategic Affordable Housing Manager

Smarter at meeting the need – of the 23,000 on the register, 69% want to live in 20 settlements

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Fixing the financial resources

• Building on the Council’s financial strength:

• Political commitment – Housing investment plan of £56 million– Reinvestment of new homes bonus / second

homes council tax

• Smarter investment– revolving loan finance – Using Council’s land value to fund development– Rural cross subsidy departure sites

Cornwall Departure site policy

Central principle – where local parishes and property values support them, rural schemes should fund themselves through cross subsidy

• Not a land owner incentive scheme• All schemes must be assessed on an open book

basis• The level of market housing will vary, being

sufficient to fund the delivery of the affordable homes

• An internal review process looks at schemes which fall below specific thresholds – less than 60% affordable or £15 k average for all plots

Cornwall Departure site policy – common questions• No, there is no local policy framework which supports the

approach• Yes, the approach has been tested at appeal :

“it was made clear to me that due to the difficulty of providing rural Affordable Housing during the recession, the Council have promoted and supported the idea of cross-subsidy, whereby a proportion of open market housing has been allowed on such sites to achieve viability. This was accepted by the Inspector at the previous appeal as being innovative, pragmatic and effective, and I concur with his opinion”.

(Appeal Ref: APP/D0840/A/10/2131749 Land at rear of Kilburn, Fraddon, St Columb, Cornwall, TR9 6LT)

• No, there is little evidence of exception site land values having risen

• No, there is no increase in opposition to such schemes, usually the reverse

• Yes schemes have been delivered …

Cornwall Departure site policy – outcomes since 2009

Market Units

Affordable

Average Range Average plot value

Range Permissionsgranted

396 524 57% 48%-83%

£10,800 £4,000-£18,000

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Cornwall Community Land Trust Fund

• Revolving loan finance• Charged at the Council’s

pooled borrowing rate of 4.7%• Just expanded to £4m

provided to individual CLTsaffiliated to the Cornwall Umbrella CLT

• Nationally, 137 CLT homes have been completed and 92 are on site, 105 of these are in Cornwall

HCA investment in Cornwall cut by 81%

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NAHP 08-11 AHP 11-15

New Council investment plans 2012-2016

Rented supply Annual 4 yearHousing association activity and HCA investment 266 1,065Cornwall Council commissioning programme 188 700Council / private sector delivery partnership 100 400Cross subsidy schemes in rural areas 75 300Section 106 on and off site 100 400Council Housing HRA infill (3 year programme) 50 200

779 3,065Ownership SupplyFirst buy allocations 87 350Intermediate sale 75 300Shared ownership 53 210Community land trusts 50 200

265 1,060

TOTAL 1056 4,125