Committee asked to support affordable rural housing projects
Last updated | 08/03/2008
Councillors are being asked to back proposals to help fund two rural affordable housing developments.
If the plans are approved the money will come from the Council Tax Fund for Affordable Housing (CTFAH). This fund has been accrued since April 2005, after the Scottish Executive announced that local authorities would be given discretion to reduce the 50% discount on Council Tax enjoyed by second homes and long-term empty properties.
The Council has used these discretionary powers to reduce the discount on some of these properties to 10%. The money receieved from this goes into the CTFAH. When the fund began Registered Social Landlords with an active role in developing affordable housing in Perth and Kinross were invited to submit proposals for grants.
Perthshire Housing Association has now applied for funding assistance for a development of 10 properties at Finlay Terrace, Pitlochry, and for another 10-house development at Kirkmichael.
Members of the Housing and Health Committee will consider the proposals at a meeting on Wednesday March 12.
A report to the Committee says that the Pitlochry development faces additional costs because of contamination issues on the land. This means the project requires higher Housing Association Grant levels than Communities Scotland would usually make available. PHA has asked the Council for around £50,000 from the CTFAH to meet the costs of work that will ensure the project can proceed.
At Kirkmicheal there is a funding gap of £54,843 above the maximum funding available from Communities Scotland. In this case PHA has requested that the shortfall is made up from the CTFAH.
Housing and Health Convener, Councillor Peter Barrett, said: “I am determined that we make demonstrable progress on increasing the numbers of affordable houses built in Perth and Kinross, this year and into the future. There is an acute shortage of affordable housing for local people which impacts on all aspects of life. The CFTAH fund is helping us address particular problems and is very welcome indeed.
“Our fundamental aim is to maximise the benefit of this money by increasing the supply of affordable housing for the people of Perth and Kinross.
“We are working hard with partners such as Perthshire Housing Association to build affordable housing, and use of innovative schemes like the CTFAH is just one way we are doing that.”
