Programme of Work - PO13 (3) Strategic Housing Investment Plan 2023-24-2027-28
North Lanarkshire Council · 31 August 2022
Back to Housing Committee — 31 August 2022 and its agenda
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref KD Date 31/08/22 Programme of Work – PO 13(3) - Strategic Housing Investment Plan 2023/24-2027/28 From Pamela Humphries, Head of Planning & Regeneration E-mail divink@northlan.gov.uk Telephone Kevin Divin, Development Co- ordinator, 07583089510 1. Background 1.1. The Strategic Housing Investment Plan (SHIP) identifies affordable housing investment priorities that support the achievement of Local Housing Strategy objectives. It is prepared by the council and submitted to the Scottish Government each year and covers a five-year period. The SHIP forms the basis of the Scottish Government’s affordable Housing Supply Programme that funds new affordable housing in the area by the council and Registered Social Landlords (RSLs). 1.2. The deadline for the SHIP 2023/24-2027/28 is 28 October 2022. The SHIP will, therefore, be prepared and submitted to the Scottish Government in accordance with the published guidance. Executive Summary The purpose of this report is to seek approval for projects to be included within the next Strategic Housing Investment Plan (SHIP) 2023/24 – 2027/28 which will be submitted to the Scottish Government on 28 October 2022, subject to approval at this committee. Recommendations It is recommended that the Committee: 1) Endorse the projects previously approved that have been included within the new SHIP, as outlined in Appendix 1 2) Approve the new projects for inclusion within the SHIP as outlined in Appendix 2 and in section 2 of this report. 3) Note that the SHIP will be submitted to the Scottish Government by the due date of 28 October 2022 subject to approval at this committee. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (1) Ensure a housing mix that supports social inclusion and economic growth
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1.3. The council’s Affordable Housing Supply Programme Budget allocation for financial year 2022/23 has been confirmed as £32.967m. The budget allocation for the period between 2022/23 and 2026/27 has been confirmed as £132.362m. Due to the difficult tendering climate resulting in significantly increased construction costs, there is a potential that not all the funding allocated for RSL projects will be spent this year. Discussions are progressing with the Scottish Government’s More Homes Division and RSL partners regarding options to bring forward projects within the overall council and RSL programmes to maximise use of the 2022/23 allocation. 2. Report 2.1 A number of previously approved projects are due to progress during the period 2023/24-2027/28 and are included within the new SHIP. These projects are set out in Appendix 1. 2.2 All local RSLs were invited to submit projects they wished to be considered for inclusion within the new SHIP. All potential projects, including the council’s own new build projects, were evaluated in terms of their deliverability and contribution to Local Housing Strategy priorities. The new projects proposed for inclusion within the SHIP for the period 2023/24-2027/28 are outlined in Appendix 2 of this report. The inclusion of projects within the Affordable Housing Supply Programme is subject to project viability, available funding and approval by the Scottish Government. 2.3 The projects outlined in Appendices 1 and 2 are estimated to require approximately £238m of grant funding from the AHSP, which exceeds the projected budget allocation noted in Section 1. Discussions with the Scottish Government More Homes Division and liaison with our RSL partners take place on a regular basis to effectively manage the programme within available resources. It is important to ensure there is an adequate supply of potential projects identified within the SHIP to ensure that the available AHSP funding can be fully allocated and spent during the period up to 2026/27. 2.4 It should be noted that the Affordable Housing Supply Programme is subject to on- going review to reflect available resources and necessary changes to the approved programme, i.e. if sites are not viable or timescales slip. There may also be opportunities that arise to include new sites within the SHIP that contribute to Local Housing Strategy priorities and help ensure that the council maximises investment from the Affordable Housing Supply Programme. 3. Measures of success 3.1 The approval of the SHIP will help the council meet its new supply targets within the Local Housing Strategy and will contribute to meeting local housing need. 4. Supporting documentation Appendix 1 Strategic Housing Investment Plan 2023/24-2027/28 – Previously Approved Priorities Appendix 2 Strategic Housing Investment Plan 2023/24-2027/28 – New Priorities Pamela Humphries Head of Planning & Regeneration
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The development of new affordable housing contributes to reducing inequalities through the provision of good quality, energy efficient and accessible homes to meet housing need. The proposals support the council’s strategic priorities and Local Housing Strategy priorities. The proposals also help the council meet its equalities obligations as the new affordable housing will include purpose built housing to meet particular needs and all properties will be built to Housing for Varying Needs standards making them more accessible for anyone with a mobility difficulty. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Affordable Housing Supply Programme is administered by the Scottish Government and provides grant funding for the council’s and housing associations’ new build programmes. The proposed projects to be included within the SHIP 2023/24-2027/28, as set out in Appendices 1 and 2 of this report, include all council new build sites approved by committee for development. Scottish Government’s new baseline benchmark assumptions have increased from £57,000 to £71,500 per unit (based on 3 person equivalent) as well as additional grant funding available for the following Additional quality measures benchmarks: • Delivering homes to Section 7, Silver Level, of the 2019 Building Regulations in respect of Energy for Space Heating (i.e. full Bronze Level plus Aspect 2 of Silver Level) - £2,000 per unit (3 person equivalent benchmark) • Provision of balconies within flatted developments where the provision of private or communal outdoor space cannot otherwise be accommodated - £4,000 per unit (3 person equivalent benchmark) • Provision of space for home working or study – £3,500 per unit (3 person equivalent benchmark) • Ensuring that all new social rented housing is digitally-enabled – £300 per unit (3 person equivalent benchmark) • Installation of ducting infrastructure for electric vehicle charge point connectors - £500 per unit (3 person equivalent benchmark) • Installation of automatic fire suppression systems - £3,000 per unit (3 person equivalent benchmark) • Installation of heating systems which produce zero direct emissions at the point of use - £4,000 per unit (3 person equivalent benchmark)
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5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? In terms of the environmental impact, the SHIP has been considered through the Strategic Environmental Assessment (SEA) as required by The Environmental Assessment (Scotland) Act 2005 and there are no major issues of relevance identified. The new homes will be built to modern standards and as a result be more energy efficient contributing to the reduction in CO2 emissions. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒
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If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The current construction market has been impacted by various cost and resource issues due to major global events such as the Coronavirus Pandemic and more recently the conflict within Ukraine. These have impacted upon the availability of resources which has led to marked increases in construction costs and thereby tender prices. The result of this is an increased potential for some projects to become non- viable. There is a risk that the projected timescales for sites included in the Strategic Housing Investment Plan may slip or that some sites may not be viable which could result in a loss of potential available funding for the area. As noted within the report there has been a reduction in projected RSL spend projections with a reduced number of completions which is currently impacting the projected spend for 2022/23. However as outlined in section 2, this risk is mitigated through the on-going review of the programme and inclusion of new projects where appropriate. A slippage allowance is also built into the programme to allow projects to be brought forward to help maximise spend each year. There is a risk that not all of the projects identified can be funded within the 2023/24-2027/28 timescale. However, the programme will be regularly reviewed and projects phased to take account of available resources, or the Council/housing association can opt to front fund projects and receive subsidy at a later date. The planning and delivery of the Affordable Housing programme is the subject of on-going dialogue with the Scottish Government to ensure effective delivery and to maximise investment in North Lanarkshire.
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Appendix 1 Strategic Housing Investment Plan 2023/24-2027/28 Previously Approved Priorities Project Developer No. of Units Cumbernauld South CGA NLC 50 Berwick Street, Coatbridge NLC 19 Community Road, Bellshill NLC 29 1-13 Bank Street, Coatbridge NLC 19 AHP – Gateside / Hornshill Farm, Stepps NLC 30 Dykehead Rd, Airdrie NLC 150 Former Columba High School, Coatbridge NLC 130 Northburn Avenue, Airdrie NLC 31 Gowkthrapple, Wishaw (Phase 1) NLC 105 Gowkthrapple, Wishaw (Phase 2) NLC 100 Glenmavis – Village Site NLC 21 Laburnum Road, Viewpark NLC 26 Orrs Building, S Bridge St, Airdrie NLC 20 Shawhead, Coatbridge NLC 111 Motherwell Town Hall, Hamilton Road, Motherwell NLC 20 Thorn Road, Bellshill NLC 26 Gartferry Road, Chryston NLC 22 Former Cumbernauld Village PS, Glasgow Road, Cumbernauld Village NLC 8 Former Police Station, Main Street, Glenboig NLC 6 Brandon Street, Motherwell NLC 49 Graham Street, Wishaw NLC 18 Kings Street, Wishaw NLC 5 Kings House, Wishaw NLC 17 Caledonian Road, Wishaw NLC 9 Glenacre Drive, Airdrie NLC 16 Gibb Street, Chapelhall NLC 25 Kildonan Street, Coatbridge NLC 49 Millcroft Road, Cumbernauld (new build) NLC 72 Airdriehill Street, Airdrie NLC 75 Calderigg Place, Airdrie NLC 30 Former Petersburn PS, Petersburn Road, Airdrie NLC 40 Ravenscliff Road, Ravenscraig NLC 24 Coshneuk Road, Stepps NLC 12 Lorne Place, Coatbridge (OTS) NLC 24 Auchengeich Miners, Gartferry Road, Moodiesburn (AHP) NLC 12 Former Kingfisher Building, Dowanfield Road, Cumbernauld (AHP) NLC 24
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Former Work Pensions Building, 1-3 South Circular Rd, Coatbridge (OTS) NLC 39 Cleland Club, Main Street, Cleland CVHA 28 East Avenue, Carfin CVHA 24 Overtown PS, Overtown CVHA 17 Parkfoot Street, Kilsyth CVHA 32 Bellaville Grove, Chryston CVHA 24 Mill Loan, Airdrie CVHA 16 Abernethyn Road, Newmains CVHA 35 1-23 Alexander Street, Airdrie CVHA 20 Balmalloch Road, Kilsyth CVHA 12 Philip Murray Road, Bellshill CVHA 51 Leslie Street, Motherwell CVHA 13 Coatbridge Road, Glenmavis CVHA 20 Melrose Avenue, Holytown CVHA 26 Woodside Street, Coatbridge CVHA 9 Gartloch Road, Gartcosh SSHA 24 Ellis Street, Coatbridge Link 36 Caledonian Road, Wishaw (ML2 8LP) Link 21 Burns Road, Cumbernauld (multis) SSHA 131 Heathfield Farm, Gartcosh SSHA 44 Main Street, Wishaw Trust 42 137 Craigneuk Road, Motherwell Trust 43 Reema Road, Bellshill Trust 48 Former United Reform Church, Bank Street, Coatbridge Trust 17 Balmalloch Road, Kilsyth Wheatley 18 Lennox House, Cumbernauld Wheatley 40 Woodneuk, Gartcosh Wheatley 18 Berryknowe Avenue, Chryston CHA 10 Stirling Street, Airdrie Nutrire 8 East Muir Street, Wishaw SVGCA 8 Total 2298 Key CGA – Community Growth Area AHP – Affordable Housing Policy site (off the shelf purchase) CVHA – Clyde Valley Housing Association SSHA – Sanctuary Scotland Housing Association CHA – Caledonian Housing Association SVGCA – Scottish Veterans Garden City Association
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Appendix 2 Strategic Housing Investment Plan 2023/24-2027/28 New Priorities Project Developer No. of Units Empty Home Purchase Scheme NLC 250 Kirkwood Sports Pitches, Coatbridge * NLC 100 Coursington and Draffen St, Motherwell NLC 60 Dunbeth, Coatbridge NLC 170 Former St. Marys Primary School site, Caldercruix * NLC 25 Masonic Hall, Motherwell * NLC 10 Affordable Housing Policy site - Johnston Road, Gartcosh (Phase 2) * NLC 12 Main Street, Coatbridge * NLC 40 Roberts Street, Wishaw Link 39 HMRC site, St Mungos, Cumbernauld SSHA 154 Hogg Street, Airdrie Trust 36 Constarry Road, Croy Wheatley 15 Hollandhurst Road, Coatbridge CVHA 20 Total 931 Key OTS – Off The Shelf Purchase CVHA – Clyde Valley Housing Association SSHA – Sanctuary Scotland Housing Association *subject to approval at this committee