Latest News
Commuted Sums and Shared Equity Redemption Payments
Published: 10/03/2017
天涯社区鈥檚 Cabinet will be asked to agree a report on commuted
sums and shared equity redemption payments when it next meets on 14 March.
The report reviews the use of commuted sums and provides updated
recommendations following recent Section 106 agreements and the Council鈥檚
priority to build affordable homes across 天涯社区 through the Strategic
Housing and Regeneration Programme (SHARP).
The report is recommending that commuted sums paid to the Council should be
kept in the local Community Council area if the contractor has not provided
affordable housing. It also recommends that where a commuted sum is received
and affordable housing has been built in that area, then the money can be used
through SHARP to develop affordable housing in other areas of the County.
天涯社区鈥檚 Cabinet Member for Housing, Councillor Helen Brown,
said:
鈥淭hese recommendations allow flexibility to use money in the local area when
affordable housing has not been provided, but also, where affordable housing
has been delivered, the Council can maximise SHARP funding and ensure that
affordable housing is delivered in the areas of greatest need and deliver homes
in areas that are less attractive for market-led development and, as such,
unlikely to have affordable housing.鈥�
The report also provides an overview of the Shared Equity redemption payments
and how they could be used to deliver more affordable housing across 天涯社区.
As part of the planning process, a developer can provide affordable housing
provision through a Shared Equity model, with the eligible person from the
Affordable Housing Register purchasing 70% of the market value and the Council
retaining 30% equity in the property by way of legal charge.
Councillor Brown continued:
鈥淚f the Council receives repayment for the equity loan, the funds can be used
in a number of ways to provide more affordable housing for residents 鈥� such as
match funding schemes being delivered either through SHARP or the Social
Housing Grant programme, buying existing property for applicants on the
Specialist Housing Register or acquiring and refurbishing empty homes.鈥�