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Provision of Affordable Housing Guidance (P.96/2021): second amendment

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STATES OF JERSEY

PROVISION OF AFFORDABLE HOUSING GUIDANCE (P.96/2021): SECOND AMENDMENT

Lodged au Greffe on 16th November 2021 by the Council of Ministers

Earliest date for debate: 23rd November 2021

STATES GREFFE

2021  P.96 Amd.(2)

PROVISION OF AFFORDABLE HOUSING GUIDANCE (P.96/2021): SECOND AMENDMENT

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1  PAGE 2 –

For the word "withdraw" substitute the word "add to". 2  PAGE 2 –

For all the words after "Waterfront guidance' (R.157/2021)," substitute the words "by stipulating that the provision of affordable housing be maximised, and not less than 15%, on all future housing developments delivered by the States of Jersey  Development  Company,  including  the  homes  built  in  the  proposed developments on the Waterfront and South Hill, while maintaining the overall viability of the schemes, including appropriate public realm improvements and amenities.".

COUNCIL OF MINISTERS

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to request the Council of Ministers to add to the guidance on affordable housing which has been provided to the States of Jersey Development Company, as found in the reports Housing Policy Guidance: Housing affordability  and  the  South  Hill  development'  (R.139/2021)  and Action  on  Housing   recent  progress  and  Waterfront  guidance' (R.157/2021), by stipulating that the provision of affordable housing be maximised, and not less than 15%, on all future housing developments delivered by the States of Jersey Development Company, including the homes built in the proposed developments on the Waterfront and South Hill, while maintaining the overall viability of the schemes, including appropriate public realm improvements and amenities.

Page - 2

P.96/2021 Amd.(2)

REPORT

The States of Jersey Development Company has a solid track record in delivering mixed housing developments, such as College Gardens, and this Amendment is designed to support this approach into the future.

It requires the percentage of affordable homes to be maximised wherever possible, while considering viability, infrastructure, and amenities, and setting a minimum affordable housing requirement of 15% in any event.

This reflects an overall aspiration that the States of Jersey Development Company contribute, alongside other providers such as Andium Homes, to our stock of affordable housing.

This allows the scheme requirements and financial implications to be assessed and evaluated in each case – as part of delivering homes within a community that has the facilities it needs to be vibrant, welcoming, and sustainable.

In contrast, the main proposition does not outline the financial implications or consider the individual schemes.

Independent evaluation commissioned by the Minister for Treasury and Resources indicates that the cost of the main proposition to deliver 30% of affordable housing on the site would be £28.2 million, and the costs of the amendment to increase to 50% would cost £66.1 million. This are very considerable sums.

Furthermore, the South West St Helier schemes is ready for planning application to be submitted and will inevitably be substantially delayed if fundamental changes are made at this stage to its financial viability.

We should not delay much-needed housing in this way, without considering all the implications.

Instead, this Amendment reflects the wishes as previously expressed by the Assembly. It maximises housing that's accessible through the Gateway, giving clear direction to the States of Jersey Development Company on all its future housing developments, while enabling each individual development to be properly considered and assessed, based on its own merit.

Financial and manpower implications

If successful, this amendment avoids the financial implications of the main proposition, estimated at £28.2 million, and the Amendment to increase the percentage to 50%, estimated at £66.1 million.

This Amendment does itself carry cost implications for future developments, as the delivery of affordable homes below market value does reduce development returns. The level of this diminution cannot be quantified in advance of schemes being planned and assessed, but the development returns from the schemes delivered by the States of Jersey Development Company, especially on sites with more limited remedial works, are sufficient to deliver 15% affordable housing through the Housing Gateway.

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P.96/2021 Amd.(2)