Affordable housing fund
The affordable housing fund was set up in November 2010. The fund is financed through contributions payable on small development sites of 1 to 3 housing properties. The contribution is equivalent to 3% of the open market value of the properties. This also applies to the conversion of existing buildings for residential use.
Management of off-site affordable housing contributions
Affordable housing contributions will be held in the affordable housing fund. The fund will be used to meet our affordable housing objectives and will contribute towards:
- Additional affordable housing to be provided by a Housing Association;
- Additional affordable housing to be provided by a private developer;
- Purchasing properties on the open market to use for affordable housing;
- Purchasing an equity stake in open market properties, with the outstanding balance paid by a local qualifying person;
- Supporting Community Land Trust affordable housing schemes;
- Seeking expert professional advice in relation to site viability assessments on individual housing sites to ensure the maximum viable amount of affordable housing in accordance with policy CS10 of the Core Strategy.
We will endeavour to spend any affordable housing contributions within the same Housing Market Area where the contribution was collected. However, we may use the Affordable Housing Fund to provide affordable housing provision on a district wide basis where supported by housing need evidence or where there is not enough funding in each housing market area to provide any tangible affordable housing.
We will require up to 10 years to spend any receipts from affordable housing contributions on small sites. This is to reflect that in some cases only small contributions will be collected from each scheme, resulting in a longer period of time for sufficient funds to accumulate to deliver the affordable housing. After the ten years the contribution will be returned to the developer if unspent, with the option to gift aid to us for the provision of affordable housing if this is preferred.