THIS REPORT RELATES COUNCIL TO ITEM 14 ON THE AGENDA

EXECUTIVE ENVIRONMENT SERVICES

22 JANUARY 2009 NOT EXEMPT

REGENERATION OF CORNTON AND CULTENHOVE UPDATE, THE AFFORDABLE HOUSING INVESTMENT ACCELERATED FUNDING PROGRAMME AND THE BID FOR NEW COUNCIL HOUSE BUILDING

1 SUMMARY

1.1 Phase 1 regeneration works are now fully complete and formally opened in both Cornton and Cultenhove. All houses have been let and the play areas are now in use. Two houses remain unsold under the Homestake scheme in Cultenhove. Castlerock Edinvar Housing Association is continuing to actively market the properties for sale. Both developments have achieved a Secure by Design Award. This is the UK Police Initiative supporting the principles of ‘designing out crime’ by the use of effective crime prevention and security standards.

1.2 The demolition contract commenced on 31 March 2008 and selective demolition is progressing well in both Cornton and Cultenhove. The selective demolition of the properties at Drip Road/Huntly Crescent, on behalf of the Raploch URC is complete.

1.3 Forth Housing Association has been awarded £2.5m for the development of 34 additional homes from Persimmon Homes at Polmaise Farm, Cambusbarron.

1.4 Forth Housing Association and Rural Stirling Housing Association have submitted further bids to the Scottish Government for consideration under the second tranche of accelerated funding.

1.5 Housing Services has commissioned DTZ consultants to assist with Stirling Council's bid to the Scottish Government for funding for Council house building. The bid was submitted to the Scottish Government on 12 January 2009 for funding of £2m.

2 RECOMMENDATIONS

It is recommended that the Executive:

2.1 notes the successful completion of Phase 1 in both Cornton and Cultenhove;

File Name: N:\DEMSUPP\NewDecisions\Executive\Reports\EX20090122Item14RegenerationofCultenhoveandCornton.doc

2.2 notes the progress with the demolition contract in Cornton, Cultenhove and Raploch;

2.3 notes that community consultation has commenced in Cornton and Cultenhove to review the masterplans;

2.4 notes that Forth Housing Association has been awarded £2.5m in accelerated funding from the Scottish Government for the development of 34 additional homes from Persimmon Homes at Polmaise Farm, Cambusbarron. These homes will assist with the rehousing of the remaining tenants in phases 2-5 in Cornton and Cultenhove.

2.5 notes that the bid has been submitted to the Scottish Government for £2m for funding for Council house building.

3 CONSIDERATIONS

Regeneration in Cornton and Cultenhove - Context

3.1 The Scottish Executive awarded early action funding to the Council through the Community Ownership Programme to kick start housing related regeneration in Cornton and Cultenhove. Masterplans for both estates, including proposals for selective demolition and new build, were subsequently drawn up in consultation with tenants and community representatives.

Phase 1 New Build

3.2 Phase 1 regeneration works are now fully complete and formally opened in both Cornton and Cultenhove. All houses have been let and the play areas are now in use. Two houses remain unsold under the Homestake scheme in Cultenhove. Castlerock Edinvar Housing Association is continuing to actively market the properties for sale.

3.3 The success of the projects, attributable to excellent partnership working and community involvement has led to both developments achieving a Secure by Design Award. This is the UK Police Initiative supporting the principles of ‘designing out crime’ by the use of effective crime prevention and security standards.

Phases 2 – 5 Demolitions

3.4 On 15 March 2007, the Council reaffirmed that the regeneration of Cornton and Cultenhove remained strategic priorities.

3.5 Although there is no commitment from the Scottish Government to funding regeneration works beyond Phase 1, following the outcome of the community ownership ballot, the Council considers it important to maintain momentum in regenerating both communities.

3.6 Limited funding was identified to take forward selective demolition and related works in Phases 2 – 5 during 2008/2009 and 2009/10. The demolition contract was tendered during October/November 2007 and awarded to George Beattie & Sons Ltd. The contract commenced on 31 March 2008 and

is progressing well. It is anticipated that all properties included within the demolition programme will be demolished by 31 March 2010.

Delivering the Final Phases of Regeneration

3.7 At its meeting on 18 January 2008 the Housing Advisory Group discussed the progress with regeneration. It noted that the master plans for each area were approved in 2005 and that a review of the masterplans was required.

3.8 Housing Services is leading on the regeneration of Cornton and Cultenhove. Joint working with Community Services and the local community groups has commenced and joint working with other Council services and the appropriate external agencies will take place as the project develops further. The aim being to ensure a holistic Council approach to regeneration.

3.9 A number of meetings have taken place with Cornton Action Planning Partnership (CAPP), Cornton Community Council and Cultenhove Opportunities Partnership (COP) to discuss what should be included in the masterplan reviews and how the review of the masterplans could be widened within the communities of Cornton and Cultenhove. Each group clearly expressed that regeneration in future should involve more than just new social rented housing. Private housing, community facilities and the use of open space should also be considered.

3.10 During December 2008, a Regeneration Newsletter was issued to all residents in both communities with a letter seeking feedback on the form of consultation that the residents would prefer. The final date for return of the responses is 16 January 2009. Consultation events will be arranged during February and early March with a view to an interim report being prepared for presentation to HAG in May/June.

Affordable Housing Investment Accelerated Funding Programme

3.11 The Scottish Government announced in November 2008 that £100m accelerated funding would be available to Registered Social Landlords (RSLs) to assist with the provision of affordable housing and to assist the construction industry during the current economic climate.

3.12 The Scottish Government set timescales and clearly defined principle and criteria for the accelerated funding programme. The funding will be available in 2 tranches - 20% for 2008/2009 and 80% for 2009/2010. All bids for the 2008/09 tranche had to be supported by the Local Authority and submitted before Christmas 2008.

3.13 The main principal relating to the funding, as with the core Affordable Housing Investment Programme (AHIP), is to ensure that local authorities secure the right houses in the right place at the right price.

3.14 In order to gauge the level of opportunity for accelerated programme the Scottish Government has been encouraging RSL's, house builders and local authorities to detail opportunities to them as they arise. RSLs must have the support of their the local authority before any bid is submitted.

3.15 Bids to the Scottish Government that have the support of local authorities and that are deliverable have been prioritised by the Scottish Government and put

forward to be considered for selection. The Regional Managers within the Scottish Government Housing Investment Division are the decision making body on the outcome of the bids.

3.16 The criteria for selecting projects is based upon:

• bulk of resources to be used for accelerated construction and land purchase, with more limited 'off the shelf' purchases;

• priority to areas with affordable housing shortfalls or where we can demonstrate more localised shortfalls;

• areas with Homeless pressures;

• areas with prioritised regeneration programme; and

• the need for projects to fall within Housing Association Grant (HAG) subsidy targets/other value for money (VFM) criteria (e.g. land purchase costs)

3.17 Value for money is considered in line with meeting (or bettering) current HAG benchmark levels, although each project/off the shelf opportunity/land acquisition opportunity will be considered in line with strategic priority and on its merits.

3.18 Whilst the Scottish Government will consider bids for "off the shelf" housing it is not so keen on this. By "off the shelf housing" it means housing that has still to be constructed (not housing that has been completed and is now lying empty). The reason for this is that housing that has still to be constructed will help secure activity/jobs within the construction industry. However, this is not an overriding reason to support particular projects.

3.19 Following a bid to the Scottish Government on 12 November 2008 Forth Housing Association were awarded accelerated funding of £2.5m for the development of 34 additional homes by Persimmon Homes at Polmaise Farm, Cambusbarron. This is in addition to the planned 14 units for rent currently on site. This development will increase the numbers of homes available for affordable housing for rent in Cambusbarron and will keep the workforce of Persimmon Homes in employment on this site for around a further 12 months. Both outcomes meet the criteria set by the Scottish Government for the accelerated funding. This project fully complied with the Scottish Government criteria as follows:

• Cambusbarron is an area currently under consideration for "pressured area" status by Stirling Council;

• FHA considers the total project cost to be within the cost limit of HAG Benchmark and therefore value for money (on this project this is estimated to be between £115,000 and £119,000 per unit, including land, construction, professional fees and any other development costs);

• the development will assist with homelessness in the Stirling Council area;

• It has been supported by Stirling Council as strategic housing authority; and

• The homes will meet space standards, accessibility standards and thermal efficiency standards for Grant funding.

3.20 Forth Housing Association has also submitted a further bid for accelerated funding to the Scottish Government for Raploch, site 5 for 14 additional homes. This bid has still to be considered by the Scottish Government.

3.21 Rural Stirling Housing Association has submitted a bid to the Scottish Government for additional homes at the Tannochbrae site in to provide an additional 8 homes. This bid has still to be considered by the Scottish Government.

Stirling Council bid for funding for council house building

3.22 In April 2008 the Scottish Government announced that it planned to invest £25 million to encourage new council house building and on 12 December 2008 invited Local Authorities to submit an application to access the available funding. The bids must be submitted by 12 January 2009.

3.23 Stirling Council Housing Services commissioned DTZ consultants in December 2008 to assist with Stirling Council's bid funding for Council house building.

3.24 The formal bid for funding of £2m was submitted to the Scottish Government on 12 January 2009.

3.25 The Scottish Government set six overarching principles that will govern the allocation of funds:

• the Council has the ability to manage the stock effectively;

• the Council has prudential borrowing capacity and/or uses other financial resources;

• the required subsidy for any proposed development from the Scottish Government will be less than £25,000 per home;

• the area has housing need and the new homes will contribute to the Council meeting its 2012 homelessness target;

• the council can demonstrate that it has well developed plans to ensure delivery of the proposed new housing, and

• the number of homes that are built is maximised within the resources available but not at the expense of having to compromise on design quality.

3.26 The Council made a clear statement of intent in the 2007 SHIP submission to return to significant house building. Over the last year, the Housing Service has been working to reduce costs and improve the efficiency of service delivery to realise this ambition.

3.27 For the purposes of the bid Stirling Council have identified the need for a total of 83 new council homes over nine sites within the Stirling area. Table 1.1 provides details on the location of the sites and the number of units required. These sites match the Council's affordable housing policy and offer opportunities to support the aims and objectives of the local housing strategy.

Table 1.1 Council House Building Sites – Phase 1 Site Number Short Descriptor of Units

4 The Path, 4 Existing stone building to be converted into 4 flats. The new homes will be allocated to mainstream housing applicants. Holy Trinity 10 The Holy Trinity School building will be converted to School, Stirling provide 10 new flats for homeless hostel accommodation Ivanhoe Place, 2 This cleared brownfield site will provide 2 semi- Raploch detached homes for rent. It is anticipated one unit will be general needs, the other special needs. Torbrex House, 10 This cleared brownfield site will provide 10 homes for Stirling rent. This will be split between general needs and learning disability units. Leckie Road, 15 This greenfield site will be provide 15 general needs homes for rent. There will be a mix of bungalows, terraced and semi-detached houses according to the need identified by the housing needs assessment and the housing waiting list. Main Street, 8 This cleared brownfield site will provide 8 homes for Bannockburn rent - 2 general needs family units and 6 elderly amenity bungalows. Kyle Avenue, 6 This cleared brownfield site will provide 6 general Cowie needs homes for rent – bungalows, terraced and semi-detached houses. Old Station 8 This brownfield site will provide 8 homes for rent – a Yard, mix of bungalows and semi-detached houses. The mix between general and special needs housing has yet to be finalised. Birch Road, 20 This greenfield site will provide 20 homes for rent – bungalows, terraced and semi-detached houses. The mix between general and special needs has yet to be finalised.

4 POLICY / RESOURCE IMPLICATIONS AND CONSULATIONS

Policy Implications Diversity (age, disability, gender, race, religion, sexual orientation) No Sustainability (community, economic, environmental) Yes Corporate / Service Plan Yes Existing Policy or Strategy Yes Risk Yes Resource Implications Financial Yes People Yes Land and Property or IT Systems Yes Consultations Internal or External Consultations Yes

Policy implications

4.1 The regeneration of Cornton and Cultenhove is consistent with the Council’s aims of social inclusion and sustainability. In March 2007, the Council confirmed that the regeneration of Cornton and Cultenhove remained strategic priorities for the LHS. This will be reflected within the updated LHS 2007 – 2009 and Strategic Housing Investment Plan. One of the LHS’s strategic priorities is regenerating and promoting sustainable communities.

Resource implications

4.2 Housing Services 30 year business plan is currently being reviewed with due consideration to the bid for Council house building.

Consultations

4.3 As community planning partners, Cornton Action Planning Partnership (CAPP) and Cultenhove Opportunities Partnership (COP) have played a pivotal role in developing regeneration proposals. Both groups have been involved in discussions concerning aspects of the demolition contract and the masterplan reviews.

4.4 Close partnership working with Forth Housing Association, Rural Stirling Housing Association and the Scottish Government has taken place in the preparation of the accelerated funding bids.

4.5 Stirling Council accountants have being involved in the preparation of the Council bid to the Scottish Government for funding for Council house building.

5 BACKGROUND PAPERS

5.1 Regeneration of Cornton, Cultenhove and Raploch - Demolition Contract - report to Executive, 12 February 2008

5.2 ‘Regeneration of Cornton and Cultenhove – Update’ - report to Executive, 4 September 2007

5.3 ‘Local Housing Strategy & Strategic Investment Plan’ – report to Executive, 4 September 2007

5.4 ‘Strategic Housing Account – Update’ – report to Executive, 14 August 2007.

5.5 ‘Regeneration of Cornton & Cultenhove – Management of Phase 1 Properties’ – report to Executive, 12 April 2007

5.6 ‘Regeneration of Cornton & Cultenhove – Update’ – report to Stirling Council 15 March 2007

5.7 ‘Cornton and Cultenhove Regeneration Project’ – report to Community Committee, 23 February 2006

5.8 ‘Cornton and Cultenhove Regeneration: An Update’ – report to Community Committee, 17 November 2005

5.9 ‘Cornton and Cultenhove Regeneration’ – report to Community Committee, 17 February 2005

5.10 ‘Regenerating Cornton and Cultenhove’ – report to Stirling Council, 16 December 2004

5.11 ‘Local Housing Strategy – Final Draft’ – report to Community Committee, 12 February 2004

Author Name Designation Tel No/Extension

Patricia Peat Service Manager – Strategy and 01786 442931 Development

Approved by Name Designation Signature

Brian Devlin Director of Environment Services

Date 8 January 2009 Reference REP976Exe.doc