Community Housing Fund Policy

1.  Introduction

1. 1.1. In December 2016 GYBC received the first tranche of the Community  Housing Fund followed by a second tranche in January 2017, the two  amounts totalled £652,770.
2. 1.2. The objectives of the Community Housing Fund are to:
   • increase housing supply in England by increasing the number of additional homes delivered by the community-led housing sector
   • provide housing that is affordable at local income levels and remains so in perpetuity
   • deliver a lasting legacy for the community-led housing sector in the form of an effective and financially self-sustaining body of expertise within the house building industry in England

2. Scope of Policy

1. 2.1. This policy sets out the Council's approach to using the Community Housing Fund monies to assist the establishment of Community Led Housing Organisations (CLHOs) and those CLHOs to bring forward sites to deliver affordable housing through the provision of grants and loans.

3. Policy Aims

1. 3.1. The aim of this policy is to increase the number of CLHOs, and the supply of additional affordable housing developed through CLHOs. The council will achieve this by:
   • providing 'start-up' funding to facilitate the creation of new CLHOs to be established across the borough
   • establishing clear criteria for how grant and loan funding to support CLHOs will be considered and awarded

4. Relevant Legislation

• Housing and Regeneration Act 2008
• Localism Act 2011
• Co-operative and Communities Benefit Societies Act 2014
• Self-Build and Custom Housebuilding Act 2015
• Neighbourhood Planning Act 2017

5. Application Requirements

1. 5.1. The fund will be allocated to activities which support the establishment of CLHOs and the preparation of planning applications and pre-development costs. This will allow funding to be provided to several projects. The funds available are not sufficient to fund an entire development, nor would it be beneficial or fair to put the remaining funds into one project.  
2. 5.2. Applications will be accepted from any Community Led Housing Organisation operating in the Great Yarmouth Borough Council area which is formally constituted as a Community Land Trust (CLT), co-operative or other form of community led housing structure.

3. 5.3. Start up Grant

4. A 'start up' grant of £5,000 is available for new Community Led Housing Organisations.  This is for the CLHO set up costs, including legal fees, and to assist in the development of an investment ready business plan.  Only one application for this grant is permitted per group.
5. Expected items to be covered include but are not limited to (indicative costs):
   • legal fees (£1250+VAT)
   • purchase of Model Rules (£325)
   • registration with Financial Conduct Authority (£250-£900)
   • public meetings preparation (room hire, presentation boards etc) (£500)
   • design of logo and promotion literature (£200)
   • website design and hosting (£500)
   • printing and distribution of promotional leaflets and posters (£250)
   • clerking (setting up a bank account, producing minutes, AGM duties) (£250)
   • newsletter production (£200)
   • membership of CLT or other co-housing network (trustee insurance, legal advice, lobbying representation, members website) (£325).

6. 5.4.Working Grant

7. Organisations can apply for an annual working grant of £3,000 to assist with the running of the group.
8. This grant can be used to procure technical support in the different areas required to bring forward a community led housing scheme.
9. This support can be in the form of:
   • communication and marketing
   • development
   • funding
   • business planning
   • governance
   • training specific to the Trustees' role
   • surveys
   • professional fees incurred to progress schemes
10. The grant can be applied for on an annual basis and will only be approved where the previous grant funding has been legitimately spent.
11. Spend will be monitored on an annual basis.
12. A working grant application will not be approved once a CLHO has a scheme which has been delivered and is occupied as the purpose of the grant is to support CLHO until they are able to cover their own revenue costs from an operational community led housing scheme.

13. 5.5.CLH Loan

14. Loans are available up to a maximum of £60,000 per application.  CLHOs can make applications for more than one loan subject to the approval of the Community Housing Fund Group.  The CLHO will be required to sign a loan agreement with Great Yarmouth Borough Council.
15. Eligible activities for the loan will include:
    • feasibility studies
    • surveys
    • architect fees
    • legal fees
    • project support
    • purchase an option
    • other activities the Community Housing Fund Group deems appropriate.
16. If the identified scheme has already been granted planning permission the CLHO can make an application for funds to assist those surveys and studies required to inform a purchase.
17. If planning permission is refused or the CLHO or a Registered Provider does not implement the scheme, the loan is lost and not repayable.
18. Loans will be administered in staged payments to avoid reclaiming any unspent monies should a scheme not proceed.
19. The loan term will be 5 years from the date of the agreement to lend.  The loan would be repayable immediately if:
    • no money is repaid with 28 days of the agreed due date
    • any enforcement notices are not complied with within 7 days
    • breach of the agreement
    • insolvency
20. Loans will be subject to interest if the scheme is given planning consent and proceeds to build or if the purchase completes of a scheme with planning permission.  Interest will be charged at 3.6% annually from the date of planning consent or completion of purchase.
21. The Borough Council reserves the right to reclaim funds where the obligations of the agreement are not met, this may include court action where appropriate.

22. 5.6.Land Purchase

23. This option makes use of the Borough Council's own funds and is outside the Community Housing Fund budget.
24. Purchasing land or buildings will be considered on an exceptional basis only where the CLHO is established and will lose the optimum site if it is not purchased quickly and the CLHO will not be able to proceed unless the Council purchases the land or buildings.
25. The Council will consider purchasing the site following a formal valuation where planning permission has been granted or it is reasonable to expect that planning consent will be issued based on received pre-application enquiry.  The CLHO will have a formal right of first refusal to purchase the land/building(s) at the same cost and will reimburse the Council's purchase costs.

26. 5.7. Development Loan

27. This option makes use of the Borough Council's own funds and is outside the Community Housing Fund budget.
28. Development loans will be considered where the CLHO is established, and funding is required to support development.
29. Loans would be available on commercial rates of interest and would be repaid within 5 years.
30. Financing would be secured against the land.

6. Delegated Decisions

1. 6.1. In order for this policy to be effective delegated authority has been given to key officers within the Council to authorise expenditure.
   • for all types of application, the Community Housing Fund Group will assess each application received to be able to make a recommendation
   • if agreed, the recommendation will be made to provide funding including details on amount of funding and type (grant or loan)
   • delegated authority has been given to Strategic Directors in consultation with the Section 151 Officer to approve allocation of funds.
2. 6.2. Applications for land (and building) purchases will be reviewed by Executive Leadership Team and will then require committee approval:
   • Housing and Neighbourhoods Committee if purchase is over £50K
   • Policy and Resources Committee if purchase is over £100K.

3. 7. Monitoring and Review

4. The policy will be monitored and be subject to review within 3 years. 

5. Status of this document

   Author	Susan Bolan
   Date	June 2022
   Document status	Approved - Housing and Neighbourhoods Committee - 14 July 2022
   For Review	June 2027