Issue - meetings

This Report Updates Members On Progress Made On The Nora Housing Project And Requests Members To Authorise The Signing Of Contracts To Enable The Start Of Works For Phase 2.

Councillor Beales presented the report which updated Members on progress made on the NORA Housing project and requested authorisation for the signing of contracts to enable the start of works for Phase 2.

The following options for the site were considered:

Option 1 -     The Councils could cease development. No land receipt would be generated and the regeneration of this part of the town would not happen.

Option 2 -     The Councils could fund the additional cost of £425,000. The Norfolk County Council was unhappy to make a further contribution (they had already committed £1.2 million to the project) as they believed the land value the JV had to pay was too high and as such this additional sum should be paid for by reducing the land value.

Option 3 -     The Borough Council could acquire the affordable units from the JV and onward sale. This approach to dealing with S106 units was agreed by a delegated decision report called Affordable Housing Investment (Shared Equity) following a report to Cabinet on 6th December 2011. This process would ensure that the subsidy associated with these S106 affordable housing units stayed in the public sector.

Option 4 -     The JV partners could request that the requirement for affordable units was waved on affordability grounds.

          Councillor Beales informed Members that 42 of the 54 units on Phase 1 had been sold.   He drew attention to the options available to the Council around the land value and affordable housing in Phase 2, whilst seeking to make a return on the development to benefit the Council Tax payer.   He set out his view that as a Council it should deliver the affordable housing on the site, he therefore recommended Option 2 above, the reduction in land value for the site.  The proposal would continue to deliver a capital receipt for the Tax payer and a number of the properties would be shared equity which the Council would retain its part of.  He also drew attention to the addition of New Homes Bonus and additional Council Tax received from the properties.

          Councillor Daubney supported the view on affordable housing and the proposed option for the scheme.   He considered the scheme extremely successful in providing attractive properties at the same time as overcoming the problems in the area.

          Councillor Lawrence expressed his support for the scheme as the homes were needed for the area.

RESOLVED:1) That the signing of contracts to enable the start of works for Phase 2 be authorised.

2)       That additional contributions be funded from a reduction in the overall land receipt using option 3 paragraph 3.3 of the report.