Strategic Housing Investment Plan 2010 - Falkirk Council

6.11 Introducing a mix of tenure within suitably sized development projects could allow
more affordable units to be delivered as noted in Table 5 below:
6.12
Table 5 taken from Housing: Fresh Thinking, New Ideas
In terms of Scottish Government funding for new Council house building, this has
previously been top-sliced from the overall resources available for affordable
housing and allocated to local authorities following a challenge fund bidding
process. Subsidy of £25,000 per unit was provided for successful bids in the first
two tranches of funding with subsidy for the third tranche increased to £30,000 per
unit. If this level of subsidy were applied to the funding assumptions outlined above,
£4,773,079 would allow 159 new Council houses to be built but would require the
Council to finance the remainder at an estimated cost of £11m. However, it must be
noted that this option is currently not available. An Investment Reform Working
Group comprising representatives from the Scottish Government, COSLA, ALACHO
(Association of Local Authority Chief Housing Officers) and the SFHA (Scottish
Federation of Housing Associations) has recently completed a review of the
arrangements for funding affordable housing and the outputs from this group are
currently being considered by Scottish Ministers. It seems unlikely that any
changes or reforms will impact on the investment programme for the coming year
but there may be amendments that will impact on future years of this SHIP.
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