Item 8 - More Home West Dunbartonshire Affordable Housing Supply Delivery Programme
West Dunbartonshire Council · 24 August 2022
Back to Housing & Communities Committee — 24 August 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer, Housing and Employability Housing and Communities Committee: 24 August 2022 __________________________________________________________________ Subject: More Homes West Dunbartonshire – West Dunbartonshire Council Affordable Housing Supply Delivery Programme 1. Purpose 1.1 This purpose of this report is to provide the Housing and Communities Committee an update on progress with West Dunbartonshire’s More Homes Programme which oversees the delivery of the Council’s new home building programme. 2. Recommendations 2.1 It is recommended that the Housing and Communities Committee: (i) Note the content of the report and the progress made to date in the delivery of the Council’s More Homes West Dunbartonshire approach including the forthcoming practical completion and handover of the latest development project at Queens Quay (Site B) scheduled for early September subject to meeting all planning conditions; and (ii) Approves the commitment that all future new homes programmed within our More Homes delivery programme building are consistent with our Net zero ambitions outlined within 4.4 of this report; (iii) Approves the undertaking to conduct procurement exercises for identified sites within the Future New Build – West Dunbartonshire Affordable Housing Supply Programme. Refer to Table 2: Identified Additional Future Sites (iv) Approves the undertaking to conduct procurement exercises for the maintenance contracts required for Net Zero technologies including Solar Panels and MVHR (Mechanical Ventilation with Heat Recovery) units as referenced in 4.19 of this report, and approves the revenue spend included in this report including approval to explore and secure multi-year contracts, contracts utilising framework agreements (FA) or contracts utilising dynamic purchasing systems (DPS) beyond the term of approved budgets where efficiencies and savings can be achieved; (v) Approve the transfer of the site at Old Bonhill referenced at 4.18 of this report from the General Fund to the Housing Revenue Account for the delivery of new Council homes for £160k subject to clear title. ITEM 8
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3. Background 3.1 In West Dunbartonshire the Affordable Housing Supply Programme (AHSP) is delivered through a More Homes West Dunbartonshire strategic approach which was initially tasked and has successfully delivered over 1000 new affordable homes in West Dunbartonshire by 2022 and includes the Council’s own ambitious New House Building Programme. 3.2 The Council’s latest practical completion will take place at the Queens Quay development in September this year delivering 29 new Council homes in a key regeneration area as part of a wider development which has delivered 146 new social rented homes. This, is in addition to the completion of the Council’s first fully dementia designed development at Creveul Court, Alexandria and other exemplar developments in Haldane, Aitkenbar, Bellmsyre, Dumbarton Harbour and St Andrews, Clydebank. The Council have now completed 12 new build developments since 2013 and are the largest developer of social homes in West Dunbartonshire delivering 496 new homes to date as outlined in Table 1 below: Table 1: Completed Council New Build Project No. of Units Completion Date Granville Street (Phase 1), Clydebank 24 July 2013 Miller Road, Alexandria 15 October 2013 Granville Street (Phase 2), Clydebank 9 February 2014 Central Bellsmyre, Dumbarton 36 December 2014 Hillstreet Square, Dumbarton 37 August 2015 Second Avenue, Clydebank 40 April 2018 Creveul Court, Alexandria 22 April 2021 Aitkenbar Primary School 55 July2021 Haldane Primary School 58 August 2021 St Andrews, Clydebank 126 October 2021 Dumbarton Harbour, Dumbarton 45 December 2021 Queens Quay, Site B, Clydebank* 29 August 2022 Totals 496 *Scheduled to complete on 19th August 2022 3.3 The Strategic Housing Investment Plan (SHIP) 2022-2026, outlining West Dunbartonshire’s Affordable Housing Supply Programme through the More Homes West Dunbartonshire approach was approved by the Housing and Communities Committee in November 2021. A new SHIP is being prepared and will be presented to the November meeting of the Housing and Communities Committee. 4. Main Issues Net Zero Homes 4.1 Scotland has committed to net zero emissions by 2045, five years ahead of the other UK nations. If this target is to be met it is essential that major changes to carbon emissions take place with a 75% reduction by 2030.
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4.2 The first major milestone is the Scottish Government’s New Build Heat Standard, where no gas boilers or oil heating systems will be permitted in new build homes from 2024. 4.3 To help West Dunbartonshire Council’s wider sustainable transition to Net Zero it is essential that we reconsider how best to heat our homes whilst simultaneously minimising fuel poverty and creating employment opportunities within the emerging technologies sector to maximise opportunities for our communities. 4.4 In terms of our affordable housing delivery programme it is proposed that all future new homes programmed within our More Homes delivery programme building on our pathfinder development projects at Pappert and Clydebank East are optimised for operational net zero, by incorporating renewable technologies within our new build program, with immediate effect by: • Incorporating Renewable Technology • Adopting a Fabric First approach • Investing in Carbon Sequestration • Creation of a Green workforce Incorporating Renewable Technology 4.5 Solar Panels should be considered when orientation and positioning allow. Solar panels harness energy from the sun to power items within the home. The solar panels will be “zero-export” to grid. When incorporated within a house or cottage flat the tenant will receive direct benefit from the energy generated. Where solar panels are fitted to blocks of flats the tenants and landlord will benefit from the supply. 4.6 Heat Pumps are a low carbon source of heating. Heat is absorbed from a source (water, air or ground) and transferred to a fluid. The fluid is compressed further to increase the temperature. The heat is transferred form the fluid into water which circulates around the home to provide heating and hot water. Adopting a Fabric First approach 4.7 It is proposed that a strengthened continuation to our fabric first approach to create highly insulated and airtight homes that will ultimately require less energy to heat and result in lower utility bills for tenants. The thermal performance of the building will be enhanced by applying the principles of: • Passivhaus featuring a mechanical ventilation system with highly efficient heat recovery; or • Platinum Aspect Level 1 (Carbon Dioxide Emissions) under Section 7 (Sustainability) of the current building standards. The relevant standard is noted below:
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4.8 Carbon dioxide emissions under the guidance to Standard 6.1, carbon dioxide emissions CO2 Dwelling Emission Rate (DER) is to be 100% lower than the Target Emission Rate (TER) set by the 2010 Standards. To establish this, the DER should not exceed zero. (This net zero carbon equivalent is a 100% improvement on the 2007 Standards). 4.9 A typical sustainability label for properties meeting Platinum 1 Carbon Dioxide Emissions is illustrated below: Investing in Carbon Sequestration 4.10 We plan to optimise investment in projects to capture and store atmospheric carbon dioxide, such as supporting the expansion of West Dunbartonshire Council’s carbon sequestration tree planting program within all future housing developments, resulting in communities that are rich in biodiversity. The Housing Development are already working closely with the Council’s Biodiversity Officer in maximising opportunities within all planned developments.
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Creation of a Green Workforce 4.11 It is the aim of the Council to create a Green Workforce within West Dunbartonshire. Working with Working4U we will engage with stakeholders, including Skills Development Scotland, to identify upskilling and modern apprenticeship opportunities within the emerging technology sector. 4.12 By developing a workforce to address labour shortages within the renewable sector, such as Solar Panel Maintenance Operatives, it is anticipated that residents will benefit from increased employment prospects and the Council will simultaneously make cost savings by delivering future maintenance contracts in house. 4.13 It is West Dunbartonshire Council’s ambition to deliver new build homes optimised for a decarbonised grid with a focus on health and wellbeing. A reduction in energy will result in homes that are more efficient and affordable to run, with the elimination of fuel poverty. An investment in the creation of a Green Workforce will ensure that the journey to Net Zero will benefit the wider community and contribute to West Dunbartonshire Council’s economic sustainability. By enhancing the biodiversity of our greenspaces and reducing carbon emissions, our communities will provide a life enhancing environment for many years to come. 4.14 While the above signifies a strong commitment from West Dunbartonshire Council to deliver net zero ambitions around our current house building programme, we will also engage with our Strategic Housing Partners, it is our ambition to encourage West Dunbartonshire’s Registered Social Landlords to share our commitment that all new build homes within our future Affordable Housing Supply Program will comply with Net Zero standards, ensuring that our communities will provide a life enhancing environment for many years to come. More Homes West Dunbartonshire - Delivery Programme 4.15 Building new affordable homes has an important role to play in revitalising local economies and assisting with post-pandemic recovery plans. It is also clear that the need for affordable homes has and will increase. Our More Homes West Dunbartonshire approach is an ambitious plan that aims to continue the positive momentum of the delivery of much needed Council homes in West Dunbartonshire. 4.16 As the biggest affordable housing developer in West Dunbartonshire, the Council has identified a number of future development sites for new council homes to address existing and new housing need. The design of these homes will further develop, improve and exceed current best practice, providing sustainable homes using innovative technology and delivering on our low carbon ambitions including passivhaus and other net zero carbon opportunities.
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4.17 The Strategic Housing Investment Plan and HRA Capital Plan outlined the plans the Council have for meeting their new build ambitions. Some of the initial plans were and continue to be impacted as a result of global issues revised new build targets for the Council are outlined below: Table 2: Council New Build Programme 4.18 Updates for each site are noted below: Queens Quay We anticipate handover of 29 new Council homes on 9 September 2022, the developer Wheatley Group are required to ensure full compliance with all planning conditions to achieve the completion certification. At the time of writing there are two notable planning conditions that require to be achieved around the provision of a car and bike club within the development. We are working with Wheatley to ensure that these are achieved and that the final handovers take place as planned on the 9th September. Clydebank East: The demolition of 339 properties completed in October 2019. Design of 88 new build council properties has been underway with CCG and architects Anderson, Bell and Christie. The project and was heard at the October 2021 Planning Committee. however, Planning was continued as committee were concerned at the parking provision provided. The Planning was approved in June 2022, with an extended parking scheme, 125%, and the inclusion of electric charging points and future proofing of all parking spaces for the provision of EVs. This delay has caused considerable financial increases estimated to be in region of 25%, caused by global construction inflation and the Ukraine invasion in February, which has resulted in additional pressures on the supply chain. Site/Developer Number of Units Est Completion Date Queens Quay Site B 29 August 2022 Clydebank East, Clydebank 88 August 2024 Pappert, Bonhill Alexandria 27 September 2024 Willox Park 17 May 2024 Gap Site Strategy 29 September 2024 Mount Pleasant 25 March 2024 Bank Street 20 January 2025 Queens Quay Site C 20 March 2024 Buyback Scheme 100 Ongoing at 20 per year Dennystoun Forge 20 March 2024 375 units
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We are now working through the revised planning conditions. Following additional and more detailed site investigations we are now also looking at very significant additional costs to deliver the ground remediation strategy. These additional costs place the development at risk due to affordability issues. We expect to be in receipt of full information to make an assessment in early September and we will provide an update to the Housing and Communities Committee when this has been achieved. This is intended to be the Council’s first fully zero carbon housing development and marks a significant milestone in our transition to net zero outlined in paragraphs 4.1- 4.14 of this report. Pappert, Bonhill The development of 27 new homes comprises 7 Passivhaus homes and 20 homes meeting the net zero ready standard. House Type Sustainability Standard Number of New Homes House 3bed/4 person Passivhaus 4 House 3bed/5 person Passivhaus 3 House 3bed/5 person Net Zero 6 House 4bed/6person Net Zero 4 House 4bed/7person Net Zero 1 Flat 2bed/3person w/c Net Zero 3 Flat 1 bed/2person Net Zero 6 Employer’s Requirements and tender documents have been issued to legal for review. Due to the specialist nature of construction (Net Zero & Passive House) tender period will be 6-8 weeks. Willox Park, Doveholm, Dumbarton All demolition works are now complete with Practical Completion Certificate issued to contractor. The site has been secured in anticipation of the construction phase of the development. Our specialist contractor commenced site investigation works on 20th June with drilling completed on 24th June. Groundwater testing and chemical testing are currently underway. So far no gross contamination has been encountered and ground conditions are as expected. Final factual report due in late August. The initial design proposals following community consultation will be presented to the Council’s planning service in advance of any formal planning submission and this is planned to take place before the end of August.
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Gap Site Strategy An exercise is currently underway to assess the viability of a number of gap sites for future housing development within the ownership of HRA. A number of sites within Bonhill have been identified and approval has been obtained from the Scottish Government to batch these sites together to form one project to allow WDC to secure grant funding. To further support our ambitions we are in discussions with our Corporate Assets colleagues regarding the purchase of an area of land located within Old Bonhill. The particular site comprises of a rectangular shaped parcel of land that is generally level and extends to extends to 2,437.46 square metres (0.60 acres) or thereby. Approval is sought within this report to transfer the site from General Fund to the Housing Revenue Account at its gross valuation of £160k. A copy of the District Valuer valuation is available as a background paper to this report. A similar exercise is underway at Clydebank with the intention of combining gap sites within Lilac Avenue and Melbourne Avenue. In response to families facing overcrowding, it is the intention to deliver a proportion of larger homes within the gap site developments. Mount Pleasant, Old Kilpatrick A number of surveys have been instructed prior to the planned demolition of the existing building. While planning in terms of this development is at an early stage we would seek to deliver a similar development to the recent Creveul Court development this is supported by a housing needs assessment. Bank Street, Alexandria The council is currently developing a proposal for 20 sheltered housing units. There are a number of infrastructure constraints within the site including a main sewer which may affect the viability of the site. We are currently working on pre-planning drawings for submission in August. Requirements from WDC Roads will be included in these drawings. This project will be required to present to the Planning and Design Panel due to the town centre location To facilitate Smollet Fountain resurfacing works, WDC Roads Department are using the site for their compound until November 2022. Queens Quay, Site C, Clydebank The Council is currently developing a design to deliver a projected 20 units on this site to complement the housing mix within sites A and B. This development will also be designed to meet low/zero carbon principles and linked to the Queens Quay district heating network . Pre-planning response was received on the 25th February highlighting concern of the WDC development proceeding in isolation. We have adopted a, proactive response to this issue and have developed Masterplan diagrams
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incorporating the surrounding sites and early discussions have taken place to explore acquiring adjacent land for development by ourselves to deliver more affordable housing in the Queens Quay regeneration site. We are also examining the opportunities for a mixed tenure approach to any expanded development site. Buy Back Scheme: In the financial year ending April 2022, we purchased 14 homes at a cost of £980,000. We have a budget of £2.4 million to purchase homes to the financial year ending 2023 having secured additional grant funding. To date we have purchased 2 homes, with 3 under offer and we have targeted to deliver an additional 20 homes each year through our buyback scheme. As part of a pilot project, we are refurbishing a semi-detached house at 87 O’Hare, bringing it up to a higher standard than our ready to let standard and improving energy efficiency of the property. This will inform our future retrofit strategy. Dennystoun Forge Gypsy/Traveller Site A submission has been made to the Scottish Government for support funding from their Gypsy/Traveller Accommodation Fund for significant improvements to the Dennystoun Forge site, including new energy efficient chalets and utility blocks. Our proposal has made it to the second round of the bidding process and we are scheduled to make a presentation to the Scottish Government in October 2022, following a consultation exercise with site residents. 4.19 To continue to ensure our new homes meet the needs of our tenants we require to put in place a maintenance and monitoring contract for solar panel and MVHR systems. It is intended that this will be an externally sourced for a period of 12 months, with an option to extend by an additional year. It is the Council’s intention to upskill their Building Services workforce during this period with a view to carrying out the maintenance of West Dunbartonshire Council’s green technology thereafter. Following committee approval Housing Development will liaise with procurement partners to carry out a procurement exercise to secure suitable contractors. 4.20 The Housing Development Team are continuously looking for opportunities to provide additional new build council homes and will bring any potential site to the Housing and Communities Committee with as much information as possible as part of the regular More Homes update paper. 4.21 Our dementia friendly development at Creveul Court received the Association Public Sector Excellence (APSE) Margo Blair Innovation Award, celebrating outstanding local councils that use innovative ideas and solutions to tackle the current challenges facing their frontline services.
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5. People Implications 5.1 There are no people implications from this report. 6. Financial and Procurement Implications Financial 6.1 In March 2021 Council approved the Housing Capital Programme 2021-2026 which saw significant resources committed to the delivery of new council homes in West Dunbartonshire. An expenditure budget of £83.393m for the affordable housing supply programme is factored into the HRA Capital Programme. The additionality in the costs highlighted for the Pappert development can be met from this existing budget; however we would anticipate additional grant funding would be made. As it currently stands, it is anticipated that this programme will complete on project life budget. 6.2 Influenced by Brexit, the current Covid-19 pandemic and other issues, the emergence of supply issues and subsequent cost increases has begun to be felt within not only our existing and future sites, but sites across Scotland and the UK. Whilst the impact of these is still being examined, it is prudent to mention this as early as possible in order to provide more detailed information at a future Committee when new tender prices are known. 6.3 We are likely to see this impact on our future development sites including Clydebank East. Housing Development Officers and Finance will continue to assess the impacts in the context of affordability of developments. Procurement 6.3 All new development sites will be subject to new detailed procurement strategies and the opportunities highlighted with 4.17 of this report will continue to be prioritised. 6.4 Where the contract award is less than £50,000, authority is delegated to the Chief Officer in consultation with the Procurement Manager to instruct the award of contracts for the planned revenue and capital spend detailed in this report to suppliers providing the most economically advantageous offer to the Council. 6.5 Where the value of the contract is over £50,000, remittance for approval will be submitted to the Tendering Committee. Community Benefits 6.6 As part of each project, the contract has incorporated an element of Community Benefits that can support a wide range of social, economic and environmental benefits for communities including jobs, apprenticeships and local charity and community initiatives. A summary of the community benefits
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achieved through the first phase of the More Homes West Dunbartonshire approach is outlined in the table below:- Community Benefit Value Total Work placement opportunities (16 plus years) – no. individuals 30 Construction Curriculum support activities – no. individuals 16 Graduates - no. individuals 1 Apprenticeship starts - no. individuals 17 Existing Apprenticeships - no. individuals 17 Apprenticeships completed - no. individuals 22 New jobs created on construction project - no. individuals 16 Community Engagement/Investment £83k 7. Risk Analysis 7.1 All Council new build projects have their own Risk Register which highlights the risk within and out-with the project team’s control. These are maintained and adjusted on an on-going basis. 7.2 With any new build project there is a risk that as the projects develop the cost increases beyond the estimated contract cost. Any additional borrowing requirements, or conversely, cost savings will be reported to future meetings of the Housing and Communities Committee. However, this is mitigated through a target cost model approach in our current contract arrangements within the Scottish Procurement Alliance (SPA) framework and Scotland Excel. 8. Equalities Impact Assessment (EIA) 8.1 The proposal does not alter any existing policy or pattern of service delivery and so is not considered to require an equalities impact assessment. 9. Consultation 9.1 As part of our recent rent consultation exercise, 92% of respondents indicated their support for the Council’s ambitious plans to deliver the Housing Revenue Account (HRA) new council house build programme. Regular updates on new build development are provided to the West Dunbartonshire Tenants and Residents Organisation at the bi-monthly liaison meetings. As detailed at 6.6 above, each project will have their own element of Community Benefits. This will provide opportunities for the community to become involved and participate whether this is pupils at the local school or interested community members. 10. Strategic Assessment 10.1 The Local Housing Strategy is the overarching document setting out the strategic direction for housing across all tenures and informs the future
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investment in housing and related services across West Dunbartonshire. Having considered all the Council’s strategic priorities, this report and the provision of new supply social housing for rent contributes greatly to all strategic priorities. Peter Barry Chief Officer, Housing and Employability Date: 11 August 2022 Person to Contact: John Kerr – Housing Development and Homelessness Manager, Housing Development and Homelessness Team, telephone: 07793717981, email: john.kerr@west- dunbarton.gov.uk Appendices: None Background Papers: West Dunbartonshire Council’s Local Housing Strategy Local Housing Strategy, Health Inequalities Impact Assessment DVS Valuation Report Development Site:WDC Amenity Land Main Street Bonhill West Dunbartonshire G83 9HS Wards Affected: All