Firms invited to bid for stalled sites scheme funding
Telford & Wrekin Council is inviting developers and landowners to apply for a loan or grant to enable a housing development which has stalled to be completed.
To test the viability of the pilot scheme, an initial sum of money has been made available for developers and landowners to apply for.
Telford has a number of housing schemes that either have not been completed or were never started because the economic recession resulted in falling land values – meaning the approved schemes were no longer viable for developers to complete.
Even though economic conditions are improving, Telford still has a number of sites where viability remains a concern.
Developers are being invited to submit applications for financial assistance as part of a competitive process to select a site which will benefit and result in the completed development of new homes.
The process has strict criteria and is only open to approved housing developments of ten homes or more, with a strong preference given to applications for loans.
Telford & Wrekin Council will recover the money loaned out through a combination of the New Homes Bonus and council tax paid by people who live in the completed developments.
The bidding round will close at 12pm on April 10 and applications need to be submitted through the council’s e-sourcing software.
If the scheme is successful, there is the option for it to be extended in the future and more cash made available.
Councillor Charles Smith, Telford & Wrekin Council’s cabinet member for Housing, Development and Borough Towns, said: "The economic downturn in many ways has left councils with a unique set of circumstances to resolve and this is a proactive way of tackling the problem.
"The decision has been made to make an initial pot of money available and that is why we are having a competitive application process.
"This pilot scheme demonstrates our commitment to creating the right conditions that will enable the borough to continue to thrive.
"Unfinished and unoccupied sites have a detrimental social and environmental impact on adjacent communities, represent a financial loss to the council in terms of income from council tax and are a missed opportunity for employment and meeting our housing need."