Purpose

Citizen Housing Group (a Registered Provider)
contacted the council regarding a proposed regeneration initiative
within Cradley Heath, part of the Cradley Heath and Old Hill Ward.
The proposal relates to two parcels of land, parcel A, the site of
the Old Majestic Cinema and parcel B, a vacant site situated on the
opposite side of the road (see appendix A).

Both parcels of land are in private ownership except for a small
section of land. Citizen Housing Group are currently undertaking
legal due diligence and are hoping to exchange contracts with the
private landowner to acquire the land July 2025. The completion of
the purchase is subject to planning permission being
obtained.

It is anticipated that a Planning Application will be submitted
September 2024 and the completion December 2027. Below is an
estimated timeline for the delivery of project by Citizen.

Timeline
Submit Planning Application - September 2024
Granted Planning Permission - May 2025
Land purchase and entry into JCT Contract - July 2025
Start on Site - August 2025
Complete Scheme - December 2027

Below is a schedule of accommodation proposed as part of the
scheme, subject to planning permission:

Number of Units Bedroom / person occupancy Type of unit
12 1 bedroom 1 person Apartment
14 1 bedroom 2 person Apartment
30 2-bedroom 4 person Apartment
1 2-bedroom 3 person Apartment
Total 57 Apartments

This regeneration scheme will also be part funded by Homes England
and the West Midlands Combined Authority.

As noted in the table above the required amount of commuted sum
monies is £xxx. This proposal offers excellent value for
money, in that the council will have100% nominations rights on
first lettings and 50% on subsequent lets to these apartments.
There are no management or maintenance cost to the council. Over
ninety seven percent of the cost of the development will be met by
Citizen and the other funding partners.

Much of the money held within the affordable housing commuted sum
account, is time limited and must be spent or committed within the
prescribed time limit or the council as to return the money back to
the developer with interest. The monies identified for spending on
this scheme, is from two separate Section 106 Agreements. One must
be spent and the other says committed as detailed below:

The Section 106 Agreement relating to planning application for
Alexandra Road - DC/10/52848 has a committed date of 10 August
2026.

The Section 106 Agreement relating to planning application for Mill
Street - DC/15/58921 has a deadline for spending of monies by 29
July 2028.

The Council’s Planning Obligations Officer has confirmed that
the allocation of the money is within the remit of the Section 106
Agreements.

Content

(1) That approval be given to the allocation
of £xxx from the commuted sum pot of money (derived from
Section 106 Agreements), as a contribution towards the construction
of 57 one and two-bedroom apartments on Cradley Road, Cradley Heath
subject to the acquisition of land and obtaining the necessary
planning permission. As shown on Appendix A for identification
purposes only;

(2) That the Executive Director of Finance and Transformation (in
consultation with the Executive Director of Place) be authorised to
enter into a funding agreement with Citizen Housing Group to ensure
the proper governance and management of the commuted sum
monies.