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Strategic Housing Investment Plan 2010 - Falkirk Council

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7.<br />

NEW FUNDING MODELS & PROCUREMENT<br />

General<br />

7.1 The Scottish Government’s housing policy discussion document, <strong>Housing</strong>: Fresh<br />

Thinking, New Ideas poses fundamental questions about the way homes can be<br />

built, allocated, funded and managed. One of the five key themes outlined in the<br />

document is that increasing the supply of affordable housing is critical. The<br />

document identifies that if housing need is to be addressed in this new financial<br />

climate, a fundamental change in the methods employed to finance and deliver new<br />

affordable homes is required. The document outlines a clear message that there is<br />

little prospect of meeting need if delivery is pursued only through traditional funding<br />

models.<br />

7.2 As a result of the financial challenges facing the housing sector, it is clear that new<br />

funding sources and models for increasing the supply of affordable housing are<br />

essential. The discussion document outlines that potential funding models<br />

currently in place or under consideration include:<br />

• <strong>Council</strong> House Building Incentive,<br />

• Leverage models,<br />

• Shared equity,<br />

• Co-operative and mutual home ownership models,<br />

• <strong>Housing</strong> and Infrastructure Loan Fund,<br />

• <strong>Plan</strong>ning Policy, Conditions and Agreements,<br />

• Innovative Bidding Arrangements,<br />

• Landlords getting more value from existing resources,<br />

• New sources of finance for RSLs,<br />

• Cross-subsidy models,<br />

• Reducing barriers to investment.<br />

7.3 <strong>Falkirk</strong> <strong>Council</strong> has a well developed <strong>Council</strong> house building programme and has<br />

demonstrated a willingness to consider and participate in new innovative solutions<br />

to increasing the supply of affordable housing. The <strong>Council</strong> will continue to adopt<br />

this approach to try to meet the strategic objective of increasing the supply of new<br />

affordable housing that provides a diverse range of affordable housing options for<br />

the current and future needs of residents wishing to live in the <strong>Falkirk</strong> <strong>Council</strong> area.<br />

Procurement<br />

7.4 In terms of procurement and the efficiencies and community benefits that can be<br />

achieved through a strategic approach to it, the <strong>Council</strong> is fully committed to looking<br />

at new ways of delivering objectives and will encourage and contribute to new and<br />

innovative procurement models to ensure the best social return on investment is<br />

achieved when delivering new affordable housing.<br />

52

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