Affordable housing fund
The affordable housing fund was set up in November 2010. Contributions payable on small development sites of 1 to 3 housing properties finance the fund. 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.
Affordable housing contributions
The affordable housing fund holds affordable housing contributions. We will use the fund to meet our affordable housing objectives. The fund will contribute towards the following:
- Housing Association provide additional affordable housing;
- Private developers provide additional affordable housing;
- 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 HS1 (Affordable Housing) of the Eden Local Plan.
We will endeavour to spend any affordable housing contributions we collect in a particular housing market area within the same Housing Market Area. 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, we will collect only small contributions from each scheme, resulting in a longer period of time for sufficient funds to accumulate to deliver the affordable housing. The developer will have the option to gift, aid to us, for the provision of affordable housing, if this is preferred.