A BID for cash to build new council houses has been turned down by the Homes and Communities Agency – but there’s still hope yet.
Crawley Borough Council’s bid to the HCA for £1,040,000 from a dedicated Challenge Fund to help pay for the building of 16 new council homes was submitted in October 2009.
Unfortunately, despite the HCA’s regional office commending the plans, the bid has been turned down on the basis the council is not in debt. The bid, which is based on the principle of match-funding with the HCA, required the council to borrow the remaining amount rather than use its own savings.
But in a bold move, the HCA has invited the council to bid for the funds through the conventional route called the Continuous Market Engagement (CME), making the scheme possible once again.
The CME is the pot of money normally set aside for registered social landlords to bid against and as yet has not been made available to councils.
Councillor Jennifer Millar-Smith, Portfolio holder for Housing, said: “It was initially very disappointing for our bid to be rejected after our approach showed so much promise. I think it’s short sighted that the government guidance was to strictly only fund councils who happened to be in debt.
“I’m pleased we’re in discussions with the HCA as it means we may still be able to secure funding for this project. The need to deliver affordable housing during the recession and the recovery has increased, with few private developers showing interest in new schemes at the moment.
“This bid was one example of how we’re taking a proactive approach to Crawley’s housing issues; providing the housing solutions our community needs – something we can all be proud of.”
If the next bid is successful the council will continue to work with Moat as its approved development agent in appointing contractors to build the new homes.
The project would also provide an important ongoing benefit as any money generated through the scheme, for example renting, is intended to be reinvested to enable the provision of further affordable housing.
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