But it will now switch to a more project-based approach.
The policy will be introduced in the redevelopment of Arsenal FC's former stadium in Highbury, north London. The stadium is listed by English Heritage and so cannot be knocked down. It will be converted into flats instead. The corporation will provide funding for 300 homes for rent and a further 200 for shared ownership.
The corporation's policy change concludes a three-year shift towards what it refers to as "sub-regional funding" in the capital. In 2002/03, more than a third of its investment supported such schemes.
The decision takes on added significance as it will ease the funding of flagship projects such as the Thames Gateway – targeted for thousands of homes by deputy prime minister John Prescott in his recent housing statement.
The area known as the Thames Gateway covers three separate council boroughs and so would have required three separate local authority social housing grants by the corporation under the old system.
Steve Douglas, the corporation's director of London investment and regeneration, said: "Our investment strategy needs to be much more strategic and pick the schemes that can be useful to us. Down the line, this is how we would like to invest in projects such as Thames Gateway as it allows our investment to make a significant impact."
Instead of sharing out funds to councils for them to spend, the corporation will use a project-based approach
Douglas said the corporation had been in discussions with the Association of London Government and other key London partners about a move away from the traditional means of allowing councils to decide how social housing grant is best spent.
The local authority responsible for the Highbury stadium scheme is Islington. It has responded positively to the corporation's plans for more direct investment.
The six-year Highbury programme is led by Newlon Housing Trust. On completion some homes will be transferred to Ujima Housing Association and Innisfree Housing Association.
The final homes will be completed in summer 2008.
n The announcement of the London Housing Statement from the Housing Corporation and ALG was expected as Housing Today went to press this week.
Source
Housing Today
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