Issue - meetings

Option 1: Approve the request for grant funding and amend the existing commuted sums policy

Advantages: The grant will enable Lune Valley CLT to bring their scheme into fruition and create a suitable community led housing model.  It will result in a further 20 units of affordable housing being provided to meet a local need.  Supporting this scheme will encourage other community groups to bring schemes forward and provides an additional source of funding if required if monies are available.  The scheme will achieve exemplar standards and contribute positively towards the council’s priorities around climate change.  

Disadvantages: The grant funding could be used to support other affordable housing schemes not yet identified. 

Risks: The risks to the council would be minimal if sufficient controls are placed on the allocation of the commuted sum payment.  A binding agreement would be entered into between Lune Valley and Lancaster City Council which sets out how the commuted sum payment must be used, and the payment will only be made when all other conditions are satisfied.  An Exclusivity Agreement/Heads of Terms were entered into between Lune Valley CLT and South Lakes Housing in March 2020 which reduce any perceived risks of the scheme not proceeding as intended.  As long as schemes are delivering affordable housing (with additional controls through the planning consent), there should be no additional risks in awarding commuted sums to community groups.   

Option 2: Do not approve the grant funding and do not alter the existing commuted sums policy

Advantages: The funding could be used to support other affordable housing schemes being brought forward by Registered Providers only.

Disadvantages: The council has already committed £267K Community Housing Fund to support the delivery of this project.  If the commuted sums payment was not approved, the scheme would ultimately be at risk and may not be delivered.  This would be a significant loss of opportunity, with some reputational damage. If the policy is not amended, it limits the funding available to support community led housing developments.  

Risks: Whilst there is usually no set time limit placed upon the council to spend commuted sums funds, there is a general expectation that the monies are put to good use by councils and allocated within a reasonable period of time to minimise the risk of any future challenges being made.