CONSTRUCTION at a site for affordable housing in Oban will be delayed further after a grant funding application to the Scottish government was turned down for a second time.
Argyll Community Housing Association (ACHA) planned to build an eight-unit housing scheme in Croft Avenue after demolishing the old buildings and clearing the site in February this year.
However, the association’s funding application for £88,000 per unit has been turned down, following a previous refusal for £107,000 per unit.
The government’s housing association grant rate was reduced from £107,000 per house to £73,000 earlier this year but ACHA claims assurances were given that flexibility would be shown to rural areas with higher costs.
ACHA has 528 outstanding applications for rented accommodation in Oban alone.
Alistair MacGregor, the association’s chief executive, said: ‘We were assured flexibility would be applied but that just hasn’t happened.
‘We are now in a position that a desperately needed affordable housing project cannot go ahead unless there is some give from government officials.
‘At a time when we are being encouraged to do all we can to work with government to meet housing need and to stimulate the building industry, this is hugely frustrating.’
Argyll and Bute MSP Jim Mather, minister for enterprise, energy and tourism, said: ‘I have spoken to the minister and he tells me that the situation is not as black and white as it has been portrayed by ACHA management. Indeed, he tells me that his department is awaiting a formal resubmission of the scheme and is open to hearing of developments that would make the project work for ACHA, householders and the interests of the wider public.
‘For my part, I am working with the sector in Argyll and Bute from construction companies to registered social landlords like ACHA to investigate all possible ways in which we can both improve the supply of affordable housing and give the local house building sector a much needed boost in these difficult times – as was evidenced by my very useful meeting with the 68 members of sector in Kilmun recently.
‘This approach is working well, binding us together, creating cooperation and collaboration, involving the communities minister in positive debate and delivering an early and substantial share of the accelerated funding for social housing to Argyll and Bute: with last week’s tranche being a further £680,000.’
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