I went to the meeting on the 30th about Somerleyton road.
Here is report from the meeting.
Cllr Pete Robbins started the meeting off. He said that this would be a unique development ( see officers report that the Council will build the scheme). It will mean that the Council will not lose the site, local people will benefit and there will be good level of affordable homes ( at least 40%). This will not be shared ownership which he said is not really affordable. But will be homes at Target Rent. The Council are proposing an innovative model.
Neil Vokes ( lead officer for Somerleyton road). He ran through the paper for Cabinet next Monday. The Council had listened to people's concerns about affordable housing and not selling land to developers.
The traditional model of development was to partner with a developer. The developer would get up to 60% to sell at full market value. The affordable element would be sold onto an RSL/ Housing Association.
Instead , after looking at what other Boroughs were doing, it is being proposed that the Council take on the risk of development. This would give greater control over design. Which is of particular importance to Oval House theatre. Also means the land would not be sold off. The Council would get a loan to build out the site. This would be paid off by the rental income from the site. It would need a loan of £50 to 60 million. The properties to rent would be owned by the Council.
The idea was to make the ongoing consultation as transparent as possible. Including how the project would be financed. The idea is to produce financial models as the project goes on to show how much affordable housing could be produced and at what rent. Also how other aspects of the scheme would affect the financial model. Such the proposed “Well being Centre”. People could then be asked there views on what they would prefer.
The timescale is to start works in 2015.
There were questions from those present.
Alternative energy/ sustainability. This can be put into the financial model to see cost implications.
There will still be opportunity to comment on issues of a sustainable development.
People asked for 100% Council housing at Target rents. Answer: The amount of Council Housing at target rents would need to be able to sustain the repayment of the loan. So at moment the Council are looking at 40% at Target rent (traditional Council rent) and the rest at below full market rent but higher than Target rent.
This came up again and again at the meeting.
There was a robust debate between Cllrs present and those who attended. Some argued that the Council should actively campaign for more Council housing at Target rent. That it should not just accept the limits of what it says it can do now. That local democracy is weak. The Council should build up support for a 100% Council housing and get groundswell of support from community to demand this.
It was pointed out that the Banks have been bailed out for millions. The cost of this scheme is a fraction of that. So campaign for more funding from government.
Cllrs ( there were two Coldharbour Ward Cllrs present ) response was that they would like to have 100% Council housing at Target rent but that this would not be possible.
Cllr Pete Robbins said that the rest of the development not at Target rent would be controlled by Council. They would want to rent it themselves. The Council would look at using more secure tenancies than private landlords in London. Such as five year tenancies. Shelter had produced model tenancy recently. The Council would like to be a Civic leader in private rental. Show that it can do it better than a lot of private landlords. No letting agency fees for example. The properties rented at higher level would subsidise those at Target rent.
Question. How would funds be raised?
Answer. There are two ways. The Public Work loans board. Loans from this source as cheaper rates than a private developer would get. Second way is from a Pension Fund. Pension Fund would lend on long term basis (30 years).
Question. What about RTB? How can this be stopped?
Answer. The Council is looking at possible Housing Coop to manage site. Would draw up tenancy for Somerleyton road that was like Council tenancy but without RTB.
Question. How will it be ensured that the finished project will not be sold off in future or affordable housing lost if the Council administration is changed?
Answer. This is being looked at and is up for further discussion.
Questions were asked about the risk?
Answer. Council will control risk by , for example, agreeing costs with contractors and keeping them to agreed cost. This would stop cost overruns. Also there is £8 million contingency built into the scheme.
Question. The costs of the housing is not that high due to the fact that the Council already own the site. And have done for many years. Only cost is building the housing. So why not 100% affordable? Is the Theatre a cost on the project?
Answer. Ovalhouse Theatre is not cost on the project as they are giving the Council there freehold site at the Oval in exchange. Also OHT are applying for a grant from the Arts Council to move to this site.
Question. Why not pay back over longer period?
Answer. The pay back time is one of the key variables. Barking are doing 45 years. But there are problems with a longer pay back time.
Question. When project is built will Council ensure that workers are on at least London Living wage? That local people are recruited?
Answer. This will be up for further discussion. But no direct answer.
Question. What about the wider stakeholder group mentioned in the report? There needs to be clear structure so that people can give their views.
Answer. This will be set up. Along with other ways to comment. ie online. Also notes of the Core Group will go online. ( Brixton Green, Ovalhouse and Council).
It was pointed out that as this is Council project some want to be able to talk to Cllrs/ officers directly. Council is doing the project. Not all are members of Brixton Green.
Spokesperson for Brixton Green spoke:
BG set up about 4 years ago. They want to use “participatory democracy” to further consultation on the site. They will be running some more workshops soon.
Basically those present supported the Council building the scheme but wanted maximum amount of Council Housing at Target rent.
