Councillor Lane declared a personal interest as his son worked for North Devon Homes.

The Committee considered a report by the Service Lead – Affordable Housing (circulated previously) regarding the allocation of affordable housing commuted sums to gap fund two affordable homes for social rent at Beechfield Road, Fremington.

The Service Lead – Affordable Housing highlighted the following:

·       It was recommended that £20,000 of commuted sums be allocated to gap fund two affordable homes (£10,000 each) for social rent at Beechfield Road, Fremington.

·       North Devon Homes had applied for planning permission for two open market houses on an existing garden area fronting onto Beechfield Road, Fremington.

·       North Devon Homes had applied for funding from Homes England to convert the approved open market houses into social rents. In addition, as opposed to the affordable rent that in the past had been the grant option from Homes England, these were to be grant aided as social rent. This would require substantial grant per unit of £92,500/unit from Homes England and following discussions with Homes England this was reliant on a contribution of £10,000/unit from North Devon Council as well as financial input by North Devon Homes.

·       Options as detailed in paragraph 4.5 of the report.

·       It was proposed that the grant would be funded from aggregating 4 small amounts of commuted sums as detailed in paragraph 5.1 of the report.

In response to questions, the Service Lead – Affordable Housing advised the following:

·       The amenity of adjoining properties would be considered as part of the planning process.

·       The relevant Parish Councils had been consulted on the proposed allocation of commuted sums from within their parish.  Some Parish Councils had not responded to the consultation despite reminders being sent.

·       Any profit that North Devon Homes made was required to be used for the provision of affordable housing within North Devon.

·       If schemes arose from within any of those parishes in the future and the same amount was required to benefit the affordable housing offer, this does not stop officers taking the scheme to Committee for support using other pots of commuted sums.  

·       A claw back clause would be included within the grant agreement showing the value of £10,000 expressed as a percentage of its current open market value. If in the future, either property was sold on the open market, that same fixed percentage of the open market value at the point of sale would be returned to the Council.

·       The properties would be 2 bed social rents.

RESOLVED:

(a)   That £20,000 of commuted sums be allocated to secure two affordable homes for social rent at Beechfield Road, Fremington.

RECOMMENDED:

(b)   That Council vary the Capital Programme by £20,000 and that funds be released to North Devon Homes, subject to a Grant Agreement upon such terms and conditions as may be agreed by the Proper Officer and Senior Solicitor and Monitoring Officer