Commuted Sums and Shared Equity Redemption Payments
Flintshire County Council's Cabinet will be asked to agree a report on commuted sums and shared equity redemption payments when it next meets on 14 March.
The report reviews the use of commuted sums and provides updated recommendations following recent Section 106 agreements and the Council's priority to build affordable homes across Flintshire through the Strategic Housing and Regeneration Programme (SHARP).
The report is recommending that commuted sums paid to the Council should be kept in the local Community Council area if the contractor has not provided affordable housing. It also recommends that where a commuted sum is received and affordable housing has been built in that area, then the money can be used through SHARP to develop affordable housing in other areas of the County.
Flintshire County Council's Cabinet Member for Housing, Councillor Helen Brown, said:
"These recommendations allow flexibility to use money in the local area when affordable housing has not been provided, but also, where affordable housing has been delivered, the Council can maximise SHARP funding and ensure that affordable housing is delivered in the areas of greatest need and deliver homes in areas that are less attractive for market-led development and, as such, unlikely to have affordable housing."
The report also provides an overview of the Shared Equity redemption payments and how they could be used to deliver more affordable housing across Flintshire.
As part of the planning process, a developer can provide affordable housing provision through a Shared Equity model, with the eligible person from the Affordable Housing Register purchasing 70% of the market value and the Council retaining 30% equity in the property by way of legal charge.
Councillor Brown continued:
"If the Council receives repayment for the equity loan, the funds can be used in a number of ways to provide more affordable housing for residents â€“ such as match funding schemes being delivered either through SHARP or the Social Housing Grant programme, buying existing property for applicants on the Specialist Housing Register or acquiring and refurbishing empty homes."