Derby Homes has made a bold bid for £8m of government cash to fund the construction of new council homes.
The arm's-length management organisation has included a bid for £8m of development money within its updated assessment of the funding it needs to meet the decent homes standard.

Last week, Derby joined other round-one ALMOs in asking the ODPM for additional funds to cover the rising costs of their business plans, as part of the scheduled reassessment of their funding needs after two years of operation.

Derby estimated that it would need a total of £32m to meet the decent homes standard and complete a planned demolition and redevelopment project.

Should the move get ODPM approval, it is expected that Derby council would own the 83 new homes scheduled to be built. This is because ALMOs' funding is made available by allocating credit approval to councils, who can then borrow up to the amount agreed.

Shaun Bennett, director of investment and regeneration at Derby Homes, said: "We have made the bid to see what kind of response we get. There is no explicit rule that says ALMOs can't receive development money."

Derby council has issued a consultation on the demolition of 137 high-rise flats, which are estimated to need about £15,000 each to meet the decent homes standard. The plans to replace the flats with 83 low-rise houses have won strong local support, according to the ALMO.

Source

Housing Today