Knowsley Council has revealed how it plans to spend £2.2m of money collected from developers for affordable housing.
The money was collected from companies building houses in the borough where affordable housing options had been reduced or not included as part of the scheme as part of a planning condition known as Section 106.
The council had previously announced it was going to bring forward proposals for how to spend the money as part of a goal of increasing the amount of affordable housing available in the borough – with a report detailing those plans brought to a meeting of the borough’s cabinet yesterday, September 13.
Cabinet member for regeneration, Cllr Tony Brennan, said the fund would be split into two components – with £1m set aside to allow social housing providers to buy up privately owned homes in the borough and termed a “private sector rescue fund.”
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A further £1.2m is being set aside to help housing associations to develop plans for new housing affordable schemes across Knowsley.
For the private sector rescue scheme, registered social landlords operating in the borough will be able to apply for a third of the value of private sector homes where the landlord has issued a “no fault eviction” because they are selling up.
The aim is to prevent homelessness for families affected by their homes being sold, with registered social landlords being encouraged to step in and make the purchase to allow the tenants to stay put.
It is anticipated up to 20 homes could be added into the affordable housing sector in the borough through the scheme.
The second component of the scheme will involve proposals where there are questions over their viability, with the money available as a grant, to be allocated by Knowsley Council to registered social housing providers depending on the circumstances of each development.
Cllr Brennan said that any future Section 106 money received from developers in lieu of providing affordable housing as part of their schemes will be added into the fund.
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