Consideration was given to the report of the Head of Housing and Community Services regarding the allocation of Section 106 funding to facilitate the development of affordable housing.  This funding would be used to facilitate delivery of a new affordable housing development, via a community led housing scheme in Bexhill, which was utilising a Council-owned site at Cemetery Lodge (CL) (to now be known as Parker House, named after the Edwardian Architect who designed the original building). 

The development was being led by Bexhill Community Land Trust (BCLT).  Their aim was to access affordable homes in perpetuity to create vibrant communities with access to educational, recreational and employment opportunities.  It was noted that alternative funding options including the allocation of the remaining Rother Community Housing Fund (CHF) grant had been considered.  However, using the CHF would mean that there would be no support for other projects.  Whilst it was accepted that by providing this site to the BCLT, the Council was foregoing a potential capital receipt, the Council’s responsibility to provide housing opportunities and create sustainable local communities was the priority factor, and consistent with corporate plan priorities.  Members also noted the level of external grant funding and additional financing BCLT were harnessing to deliver the development.

Members were advised that the Council currently held £377,797.49 of Section 106 planning contributions (money received from developers).  There was no time limit to allocate this funding.  Capital funding of £200,000 was required to enable BCLT to deliver six new affordable homes at CL.  The funding would be used for refurbishment costs and retaining the CL as part of any future scheme, based on initial surveys and the expertise of the Sussex Community Housing Hub (SCHH).  The report identified the proposed funding streams and all funding had been secured and agreed in principle with lenders supported by SCHH.  Any funding agreement between the Council and BCLT would be subject to BCLT securing the remaining funds required to deliver the whole scheme.  Subject to planning permission being granted (expected in November 2022), CL would progress to the development phase where other funding options had been established.

Cabinet was supportive of the Capital Funding programme being updated and agreed that £200,000 be granted to BCLT to deliver the affordable housing scheme at CL, Bexhill and that delegated authority be granted to the Head of Housing and Community Services in consultation with the Cabinet Portfolio Holder for Housing and Homes to agree the final terms of the grant.  Members agreed that this site was a good opportunity to meet the Council’s affordable housing target and in view of current challenging and future proposed national planning reforms, it was considered important that these opportunities were fully realised.

RECOMMENDED: That subject to 1) and 2) below, the Capital Funding programme to be updated accordingly;

AND

*RESOLVED: That:

1)    a grant of £200,000 to Bexhill Community Land Trust be approved from the Section 106 Affordable Housing Funding for the delivery of six affordable homes at Cemetery Lodge, Bexhill, match funding funds already secured by the Community Land Trust; and

2)    the Head of Housing and Community Services be granted delegated authority to agree the final terms of grant in consultation with the Cabinet Portfolio Holder for Housing and Homes.

*The RESOLVED parts of this Minute are subject to the call-in procedure under Rule 16 of the Overview and Scrutiny Procedure Rules.