Decision

RESOLVED

Allocation of Section 106 Commuted Sum Funding for the Redevelopment of Seven Garage Sites

Subject to (i) Full Council approval of the associated budget and (ii) approval of sufficient funding by Homes England):

i)               That the allocation of £2.29m of Section 106 Commuted Sum funding (‘the funding’) to Saxon Weald for redeveloping seven garage sites in the district to deliver 22 homes at social rent be approved; and

ii)              That authority be delegated to the Director of Place to (i) enter into the necessary funding agreement with, and to authorise the release of the funding to, Saxon Weald, and, (ii) undertake any other functions and enter into any other documents required to give effect to this initiative.

RECOMMENDED TO COUNCIL

i)               To approve the allocation of £2.29m of Section 106 Commuted Sum funding to the Housing Enabling Grants budget in the 2027/28 financial year.

Section 106 Delegation

RECOMMENDED TO COUNCIL

i)          To delegate authority to the Director of Resources and/or Section 151 Officer to make in-year changes to the Council’s budget to facilitate any future Section 106 funding allocations.

REASONS

Allocation of Section 106 Commuted Sum Funding for the Redevelopment of Seven Garage Sites

i)               To allocate Section 106 funds to Saxon Weald to facilitate the delivery of affordable homes in the district.

ii)              To support the delivery of additional affordable homes, maximise external grant funding opportunities and increase the supply of housing available to households on the Council's Housing Register. The proposal will maximise the delivery of genuinely affordable homes, provide significant social benefits for residents, reduce pressure on temporary accommodation and homelessness services and deliver long-term housing solutions for households in the greatest housing need.

iii)             Full Council is responsible for setting the Council’s budget.

Section 106 Delegation

i)               Delegating authority to the Director of Resources and/or Section 151 Officer to make in-year changes to the Council’s budget to facilitate any future Section 106 funding allocations provides flexibility to enable Section 106 funds to be allocated and released in between the setting of budgets.

ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS IDENTIFIED IN THE REPORT

Allocation of Section 106 Commuted Sum Funding for the Redevelopment of Seven Garage Sites

Do nothing:

This option was rejected as it would result in the loss of an opportunity to secure additional affordable housing within the district and would significantly reduce the affordable housing benefits derived from the redevelopment of the garage sites.

Approve affordable rent funding only:

This option would require a lower Section 106 contribution of approximately £1.32 million and would enable the delivery of the scheme as affordable rent. However, it would not provide the same level of affordability as social rent and would therefore deliver reduced benefits to households on the Council's Housing Register, particularly those on the lowest incomes.

In addition, the scheme would be less closely aligned with Homes England's current funding priorities, which place a strong emphasis on the delivery of social rent homes. As a result, there is a greater risk that Homes England grant funding may not be secured, potentially creating a larger funding gap and increasing the level of subsidy required from other sources to support scheme delivery. This option would therefore reduce affordability outcomes and may weaken the overall funding package for the development.

Section 106 Delegation

Not to recommend that Full Council makes the delegation: This option was rejected as it would not provide flexibility to enable Section 106 funds to be allocated and released in between the setting of budgets.