Item 8 - More Homes - West Dunbartonshire Council Affordable Housing Supply Delivery Programme
West Dunbartonshire Council · 21 August 2024
Back to Housing & Communities Committee — 21 August 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer, Housing and Employability Housing and Communities Committee: 21 August 2024 __________________________________________________________________ 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) Notes 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 handover of new homes at the Clydebank East and Gilmour Avenue development; (ii) Approve the updated estimated costs for Braehead and Campbell Street (Bonhill gap sites) and Bank Street development; (iii) Approve the procurement exercise and to award the contract up to the updated estimated costs for the projects above; (iv) Approve the procurement exercise of a multi-disciplinary design team for Clydebank Health Centre and to award the contract up to the approved costs for the project; (v) Approve the procurement and award of the Queen Mary Avenue Design and Build development contract by the Chief Officer – Housing and Employability in consultation with the Procurement Manager, to appoint a suitably experienced contractor to deliver the new homes within the approved budget through an appropriate procurement framework. 3. Background 3.1 In West Dunbartonshire the Affordable Housing Supply Programme (AHSP) is delivered through a More Homes West Dunbartonshire strategic approach which has successfully delivered over one thousand new affordable homes in West Dunbartonshire to date and includes the Council’s own ambitious New House Building Programme. ITEM 8
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3.2 The Council’s last practical completion took place at the Queens Quay development in September 2022 delivering twenty-nine new Council homes in a key regeneration area as part of a wider development which has delivered 146 new social rented homes. The homes were the first residential properties to be heated from the Council’s Queens Quay District Heating Network. This development has been recognised at recent national housing sector awards winning the following: - Best Residential Regeneration Project – Herald Property Awards Inside Housing Best Residential Development (Scotland) 3.3 These 29 new homes, are 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 twelve new build developments since 2013 and are the largest developer of social homes in West Dunbartonshire delivering 496 new homes and 128 acquisitions through our buyback scheme to date as outlined in Table 1 below. The 500th new build home in the More Homes West Dunbartonshire delivery programme will be delivered in October 2024 at our Clydebank East development: Table 1: Completed Council New Build and Acquisitions 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 Buyback Acquisitions 128 Ongoing Totals 624 3.4 The Strategic Housing Investment Plan (SHIP) 2024-2029, 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 2023. The SHIP outline plans to meet the Council Administration’s aim of delivering 2500 new affordable and social rented homes over the next 10 years.
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4. Main Issues More Homes West Dunbartonshire - Delivery Programme 4.1 Building new affordable homes has a significant role to play in revitalising local economies and assisting with post-pandemic and economic recovery plans, negating the impacts of the current cost of living crisis and combatting poverty including child poverty. It is also clear that the need for affordable homes has and will increase in the current ongoing economic environment. 4.2 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 and will significantly assist the Council’s aim to deliver 2500 new social and affordable homes by 2032. 4.3 As the biggest affordable housing developer in West Dunbartonshire, the Council has identified several 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. 4.4 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 because of global issues revised new build targets for the Council are outlined below: Table 2: Council New Build Programme Project Number of Units Number of Specialist Provision Site Start/Est Site Start Est Completion Date Clydebank East, Clydebank 88 9 On Site January 2023 Spring 2025 (First handovers – October 2024) Pappert, Bonhill Alexandria 26 3 On site March 2024 Spring 2025 Mount Pleasant 19 19 On site April 24 Spring 2025 Gilmour Avenue 2 1 Autumn 24 Autumn 2024 Willox Park Phase 1 17 17 Winter 24 Winter 2025 Bonhill Gap Sites 34 4 Winter 24 Winter 2025 Bank Street, Alexandria 22 22 Jan/Feb 25 Jan/Feb 26 Clydebank Health Centre* 38 22 Spring 25 Autumn 2026 Queen Mary Avenue* 16 4 Winter 25 Winter 26 Dennystoun Forge 20 20 TBC TBC
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*Current Planning figures 4.5 Updates for each site are noted below: Clydebank East: This development will deliver eighty-eight new homes and has been designed to meet the housing need within the wider West Dunbartonshire area. The table below shows the housing mix: House Type Sustainability Standard Number of New Homes Wheelchair Bungalow 3bed/4person Net Zero 3 House 3bed/5person Net Zero 15 House 4 bed/7person Net Zero 12 House 5 bed/8 person Net Zero 8 Wheelchair Cottage Flat 1bed/2 person Net Zero 4 Cottage Flat 2 bed/4 person Net Zero 4 Flat 1 bed/2person Net Zero 16 Flat 2 bed/4 person Net Zero 24 Wheelchair Flat 1 bed/2person Net Zero 2 Works commenced on this development in January 2023 and the first homes are scheduled to be handed over in October 2024. All houses are designed to the Housing for Various Needs Standard (HfVN). There will be nine fully Wheelchair (WCH) accessible properties. The 4- and 5 -bedroom homes will all have ground floor double bedrooms. The development at Clydebank East will see the completion of a major housing led regeneration of a key priority regeneration area identified in the Local Housing Strategy and will be the first fully zero carbon housing development in West Dunbartonshire and marks a significant milestone in our transition to net zero new homes approved at the August 2022 meeting of the Housing and Communities Committee. Plans are being developed to mark the significance of the net zero element of the development and the development will see the 500th new home delivered through the More Homes West Dunbartonshire approach. Silverton Regeneration* 10 2 TBC TBC Willox Park Phase 2* 25 25 TBC TBC Queens Quay Site C* 100 10 TBC TBC Buyback Scheme (60 per year) 300 36 2023/24 2027/28 717 units 194 units Previous units 710 – Planning figures amended. (Silverton Regen, Willox Park Phase 2, Gilmour Ave added – Clydebank Gap sites removed) Previously 172, increase in sheltered provision
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We have previously reported award of above benchmark grant due to the complexities of the development at Clydebank East this resulted in a total grant award of £12.6m, this equates to over £143k grant per home and around £4.68m more than the benchmark grant award this ensured the delivery of the development without any negative impact on the wider Housing Revenue Account. Pappert, Bonhill This project enjoyed a site start date in early March, delivering the housing mix as follows: - House Type Sustainability Standard Number of New Homes House 3bed/5 person Passivhaus 6 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 Mount Pleasant, Old Kilpatrick CCG have been appointed as the main contractor following the Tendering Committee in September, having been directly appointed from the Scotland Excel Framework. The site started15th April 2024 and construction will last approximately one year. This is a 19-unit complex which is designed for elderly residents and will deliver high quality amenity housing, the housing mix is outlined below for information. House Type Sustainability Standard Number of New Homes Bungalow 1bed/2person Net Zero 3 Flat 1bed/2person w/c Net Zero 4 Flat 1bed/2person Net Zero 4 Flat 2bed/4person Net Zero 8 Willox Park, Doveholm, Dumbarton The development of seventeen new homes to be delivered at the former care home site. House Type Sustainability Standard Number of New Homes Flat 2bed/3person Net Zero 2 Flat 1 bed/2person Net Zero 15
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This development has now been granted planning permission and a contractor, McTaggart Construction, has been appointed to begin the construction phase. The net zero heat strategy will be delivered by ground source heat pump, as it was felt that this solution to be preferable than an air source heat pump for each home. Bonhill Gap Site Strategy The pre-planning application process has commenced on the development of the three separate gap sites which are contained within this wider development project. Planning has been submitted for both the Campbell St and Braehead sites. We ask the committee to note and approve the updated estimated costs for these projects of £9,751,388 and to appoint a contractor up to this estimated cost. The previous estimated costs were £9,354,809.18. This is a 4.2% increase and takes into account more detailed drainage and landscape design and 0.5% framework levy increase. We have amended the housing mix for the O’Hare gap site and will now deliver six one-bedroom cottage flats, this revised housing mix meets housing need and demand projections within the wider area. The projected costs of delivery meet our affordability threshold which the previous housing mix that was stopped could not. Bank Street, Alexandria The development will consist of twenty-two sheltered/amenity housing units in partnership with the HSCP. Planning has been submitted. House Type Sustainability Standard Number of New Homes Flat 1bed/2person w/c Net Zero 22 Communal Room Net Zero 1 Site Braehead Campbell St O’Hare 1 bed 8 (4 WCH + 4 GN) 6 6 2 bed 3 (WCH) 3 bed 3 4 bed 2 5 bed 4 6 bed 7 bed 2 Total 17 11 6
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Staff Office Net Zero 1 We ask the committee to note and approve the updated estimated costs for this projects of £7,793,677. We also seek approval to procure a contractor up to this estimated cost. The previous estimated cost was £6,187,281. This is an increase of £1,606,369 (26%). The reasons behind this are due to an increased gross internal floor area (GIFA) of 27%, construction inflationary increase, additional soft landscaped area, the requirement for an additional lift within the development, and includes a saving from installing exhaust air heat pumps instead of ground source heat pumps. Clydebank Health Centre Having received the feasibility report for the site, we aim to develop twenty units of sheltered housing to reprovision existing sheltered housing currently provided at Young Street, therefore strategically improving the provision of sheltered accommodation within Clydebank. We also aim to build around eighteen units of mostly family housing. We are seeking to appoint a multidisciplinary design team through the Scottish Procurement Alliance framework to carry forward the above- mentioned site proposal designs. This would consist of an architect-led multidisciplinary team inclusive of engineering, energy, landscaping, and fire consultants. Approval is sought by the Housing and Communities Committee to accept the tender price for this project of £540,651.90 which is around 4.9% of the estimated project delivery budget. The demolition of the Health Centre was awarded to Caskie Ltd and works commenced on the 3rd June and the demolition programme is scheduled for around 20 weeks. Gilmour Avenue, Hardgate As part of the wider development of our Clydebank Gap Site strategy we identified a Housing Revenue Account site in the Hardgate area at Gilmour Avenue. The site was previously the location of timber garages on concrete bases. These have long since been demolished and the site has been beset with fly tipping issues for several years. The proposed development has now been granted planning permission for two three bed semi-detached homes to be delivered utilising modular construction methods. The houses should be completed in October 2024. Dennystoun Forge Gypsy/Traveller Site We continue to engage with the Scottish Government over the possibility of accessing support through the Gypsy/Traveller Accommodation Fund. There remains a hope that a further tranche of funding will be released. AHSP funding may be an alternative funding option, and we have included the project in the current SHIP and HRA Capital Programme. In the meantime, we
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are refining our plans for the development through engagement with other local authorities and ongoing consultation with site residents. Queen Mary Avenue, Clydebank (Clydebank Gap Sites) The transfer of the site at Queen Mary Avenue, Clydebank with vacant possession at the cost of £140,000 from the Council’s General Fund to the Housing Revenue Account for the delivery of new Council homes was approved at the February meeting of the Housing and Communities Committee and has now been concluded. The demolition contract for the units was awarded to Caskie Ltd. The programme started on 6th July and will take approximately 6 weeks. Initial feasibility for this site had identified the potential for around sixteen new homes. Considering the Council’s housing emergency declaration in May 2024 and the pressures on the affordable housing supply programme funding outlined in more detail within section 4.6 – 4.13 of this report, we are seeking to accelerate elements of new housing delivery. We have identified the development at Queen Mary Avenue as one possible development that we would seek to accelerate through a design and build delivery route. This is based on our experience at the Mount Pleasant and a strategy has been developed to appoint an experienced and capable contractor to undertake the delivery of these new homes through a procurement Framework up to the approved budget. Silverton Regeneration The two identified sites in Smollett Road and Dumbuie Avenue are progressing towards demolition and building warrants for demolition in place. The tender for demolition went out on 24/7/2024 for 3 weeks. Tenders are due back on 7/8/2024 with an estimated start date one month later (7/9/2024) with an expected completion date six weeks thereafter. Queens Quay, Site C, Clydebank The Council has been developing a design to deliver a projected twenty 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 25 February highlighting concern of the WDC development proceeding in isolation. We have adopted a proactive response to this issue and have developed masterplan diagrams incorporating the surrounding sites and have conducted valuations on the adjacent site to Queens Quay C with a view to purchasing additional land to deliver more affordable housing in the Queens Quay regeneration site. If this is achieved, we would seek to develop a mixed tenure approach to any expanded development site delivering one hundred new affordable homes.
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We are seeking discussion with CRL (Clydeside Regeneration Limited) to progress the possibility of acquiring this additional land and will be able to draw down Scottish Government grant to enable this. However, because of the uncertainties surrounding potential delivery timescales for this project and the reduced funding it is no longer allocated funding within the current Strategic Housing Investment Programme. Buyback Programme The Council’s buyback programme which incorporates the Mortgage to Rent Scheme purchased sixteen new homes in 2022/23. In 2023/24 we purchased thirty-five new homes at an average purchase cost of £100,000. 26/35 were larger family homes with 3+ bedrooms. The housing mix is shown in the table below: In 2022/23 16 properties were purchased 3 of which were 3+ bedroom larger family homes. In 2023/24 and following approval of the Strategic Housing Investment Plan by the Housing and Communities Committee in November 2022 and subsequently the decision by West Dunbartonshire Council in March 2023 to deliver an enhanced Housing Capital Investment Programme including additional funding for buyback purchases we are now scaling up ambition around our buyback programme. In 2024/25 and in each of the subsequent years up to and including 2027/28 our ambition is to deliver sixty new homes each year meaning a minimum of three hundred new Council homes to meet identified need will be added to the Council housing stock. 4.6 In December 2023, the Deputy First Minister and Cabinet Secretary for Finance set out the Scottish Government’s proposed spending and tax plans for the Scottish Budget 2024/2025. The announcement revealed that the Scottish Government was proposing a reduction in the overall Housing and Buildings Standards budget from £738m to £533m. This represents a cut of around £200m or 26%. Number Number Bedrooms House type 5 Semi detached 2 Detached 4 Mid Terrace 7 End Terrace 3 Tenement 2 Maisonette 3 3+ bedrooms 4-in-a-block 6 4-in-a-block 1 Maisonette 1 Tenement 1 1 or 2 bedroom Bungalow
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4.7 The More Homes budget, which provides grant aid for affordable new homes and the buyback programme, was reduced from £564.6m in 2023/24 to £375.8m in 2024/25. 4.8 The West Dunbartonshire Strategic Housing Investment Plan 2024/25 – 2028/29 (SHIP) was approved by West Dunbartonshire’s Housing and Communities Committee in November 2023 and submitted to the Scottish Government. Our Council Annual Resource Planning Assumption (RPA) from the Scottish Government supporting the delivery of the SHIP was £10.795m. The budget cut has reduced this figure to £8.167m for 2024/25, a cut of 24%. 4.9 The national capital resources available for future RPAs will depend on future budget decisions by the Scottish Parliament. In the absence of future year budget assumptions, and to aid programme management, we have been advised by the Scottish Government to operate carry-forward limits for the years 2025-26 – 2027-28 of 80%/60%/40% of current year RPA levels. 4.10 The budget cuts have implications for the SHIP and how it will be programmed over the years ahead. We propose to manage spend on individual projects to ameliorate the budget cuts and to maximise the delivery of the new build and buy-back programmes. 4.11 We are exploring with partner RSLs opportunities to support the programme with funding from their financial reserves or other sources. Some development partners are known to hold significant reserves that could be employed to assist in the funding crisis. 4.12 In joint discussions with the Scottish Government we are considering the use of front funding, whereby the developer, the Council or RSL, would meet the costs in the early part of the project with the SG guaranteeing their contribution later. Such an arrangement would require agreement from the Scottish Government and careful management of the programme, but it is an approach that has been employed in the past when funding was also previously constrained. We have so far reached agreement with one RSL over their front funding during 2024/25, on the understanding that the grant will be guaranteed payable on 1st April 2025. We have also assessed front funding arrangements within the HRA Capital Investment Programme and Budget for our Bonhill Gap Site development which presents no risk to the wider investment programme. 4.13 As a first step we have remodelled the SHIP programme to address the immediate priority of the financial shortfall in 2024/25. The table below shows our current proposal on how the revised SHIP can be programmed for this year as an interim measure. We are confident that the projects listed can be accommodated within this year’s reduced budget with the help of front funding. However, if there is no improvement to the AHSP funding awards, significant amendments and possibly delays will ensue from 2025/26 onwards. This will be subject to ongoing discussions with all partners with a view to protecting the programme as far as possible. There is an ongoing element of exceeding the revised Resource Planning Assumption by
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£901,307, however we anticipate additional monies being made available to support both the Councils and partner housing association ROTS programmes (Buyback schemes). 4.14 Details of the new programme will be set out fully in the new SHIP 2025/26 – 2029/30, which will be presented to Housing and Communities Committee in November 2024 for approval, where hopefully there will be more clarity on future ASHP funding following the Scottish Government’s new Programme for Government. 4.15 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. 5. People Implications 5.10 The delivery of the More Homes delivery programme is managed through existing resource within the Housing Development & Homelessness team funded from the Housing Capital Investment Programme. 6. Financial and Procurement Implications Financial 6.1 On 6 March 2024 Council approved the Housing Capital Programme 2023- 2028 which saw significant resources committed to the delivery of new council West Dunbartonshire Council Units 2024-25 WDC - Pappert, Alexandria - P43626 26 £2,302,859.76 WDC - ROTS 2023-24 & 2024-25 - Non-Larger Family - P46998 31 £450,000.00 WDC - ROTS 2023-24 & 2024-25 - Larger Family - P47242 64 £1,408,000.00 WDC - Mount Pleasant, Old Kilpatrick - P45125 19 £1,370,448.19 WDC - Willox Park, Dumbarton - P45124 17 £1,075,000.00 WDC - Gilmour Avenue, Hardgate, Clydebank - P46873 2 £195,000.00 WDC - Knowes HA - Faifley Bowling Club - P43600 27 £119,000.00 WDC - Caledonia HA - Bellsmyre Regeneration Phase 1 - P43960 138 £1,348,000 WDC - Clydebank Health Centre - P45783 38 £200,000.00 DPHA/KHA ROTS (National Acquisition) 12 £600,000.00 Total 374 £9,068,307.95 Resource Planning Assumption £8,167,000.00 Difference £901,307.95
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homes in West Dunbartonshire. An expenditure budget of £155m for the affordable housing supply programme is factored into the HRA Capital Programme this will be updated to reflect the income and expenditure highlighted within this report. As it currently stands, it is anticipated that this programme will complete on project life budget. 6.2 Housing and Finance Officers will continue to assess the ongoing affordability of future developments within the context of the Housing Revenue Account Business Plan. 6.3 The proposed actions as a result in the reduction of Scottish Government Affordable Housing Supply Programme funding is outlined in Section 4 of this report. Procurement 6.4 All new development sites will be subject to new detailed procurement strategies and the opportunities highlighted within 4.5 of this report will continue to be prioritised. Where the contract award is less than £213,000, 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 All procurement activity conducted by the Council more than £2m is subject to a contract strategy. The contract strategy for new housing development within the HRA Capital Programme will be developed by the Corporate Procurement Unit in consultation with Housing Development Officers. The contract strategy will include, but is not limited to; contract scope, service forward plan, the market, procurement model and routes – including existing delivery vehicles, roles and responsibilities, risks, issues and opportunities and on-going contract management. Opportunities to maximise the positive social, economic, and environmental impact for the Council through the relevant procurement processes will be developed in line with procurement policy. 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.
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8 Environmental Sustainability 8.1 The delivery of new homes is within the approved More Homes zero carbon approach. Our current and future approach to strategic housing asset management will continue to prioritise a ‘zero carbon’ approach to decision making and deliverability and this will be done the aims of the Housing Asset Management Strategy and the Council’s Climate Change Strategy. 9. Equalities Impact Assessment (EIA) 9.1 The proposal does not alter any existing policy or pattern of service delivery and so is not considered to require an equalities impact assessment. 10. Consultation 10.1 As part of a 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. In addition, there was positive support for the wider delivery of new build housing as part of the recent Local Housing Strategy. Regular updates on new build development are provided to the West Dunbartonshire Tenants and Residents Organisation at the bi-monthly liaison meetings. 11. Strategic Assessment 11.1 The Local Housing Strategy is the overarching document setting out the strategic direction for housing across all tenures and informs the future investment in housing and related services across West Dunbartonshire. 11.2 Having considered all the Council’s strategic priorities, this report, and the provision of new supply social housing for rent contributes to all the Council’s strategic priorities. Peter Barry Chief Officer, Housing and Employability Date: 7 August 2024 Person to Contact: John Kerr – Housing Development and Homelessness Manager, Housing Development and Homelessness Team, Housing and Employability, telephone: 07793717981, email: john.kerr@west-dunbarton.gov.uk Mikayla Deeley, Senior Housing Development Officer, Housing Development and Homelessness Team, Housing and Employability: email mikayla.deeley@west- dunbarton.gov.uk
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Appendices: None Background Papers: West Dunbartonshire Council’s Local Housing Strategy Local Housing Strategy, Health Inequalities Impact Assessment Wards Affected: All