Brownfield Land Release Fund (BLRF2) Round 3… Are you missing out on this funding?
Up to £80m capital funding is available to English Councils in the third and final round of BLRF2. Approximately £100m was allocated in the previous two rounds as part of the government’s £180 million Brownfield Land Release Fund 2 (BLRF2) capital grant funding and many Local Councils have benefitted from this.
BLRF2 is targeted at unlocking brownfield projects in providing much needed homes, which will otherwise be unviable.
The good news is that BLRF2 funding can be provided alongside other government funding to unlock your brownfield projects – and it can also be provided independently of other forms of grants.
Is your Local Council missing out?
BLRF2 applications are still open but will close at 11:59pm on Wednesday 14th February 2024, so whilst there is still time to apply, the application requires careful considerations and proper due diligence to be successful. This requires adequate time input to ensure the application meets the funding requirements.
Best to start preparing early and we can assist, using our experience of supporting other Local Councils such as Camden Council is securing £Millions in additional grant funding, to supplement their other capital grant funding via the GLA or Homes England.
The BLRF2 application assessment involves a structured process to ensure grant funding is awarded to Councils deemed to have projects which represent real value for money, are deliverable and which meet the BLRF2 assessment criteria, namely:
Eligibility criteria (pass/fail)
Gateway criteria (pass/fail)
Project prioritisation criteria ((Place-based metrics (50 per cent); Strategic case (35 per cent); Innovation (10 per cent); & Public Sector Equality Duty (5 per cent)).
Airey Miller can support you in ensuring your application meets these criteria.
Below are some of the other things to note regarding your BLRF2 (Round 3) application (list not exhaustive):
Unlock additional funding
Decision on applications and announcement of funding awards: Summer 2024;
Works contracts must be signed by 31 March 2025;
Land release required by 31 March 2028;
Funding is available to “unlock” sites where market failures are preventing housing from being delivered. Evidence of market failure would include a viability gap;
The fund cannot be used to support viable projects;
BLRF2 is open to all councils across England, specifically: Borough, County, District, London Borough, Metropolitan Borough, and Unitary Councils. Mayoral Combined Authorities (MCAs) are eligible, as are their constituent councils. The Greater London Authority (GLA) is also eligible, but to the GLA only and does not comprise the whole GLA Group;
The test for viability gaps / market failure / VfM are onerous and prescriptive. Funding Benefit-Cost Ratio assessment will apply;
The project must undertake capital works on council-owned land only;
Funding is not available for works already undertaken or contracted before the Grant Funding Agreement is signed by all parties;
Not all project costs are eligible. Eligible works which qualify for BLRF2 include the following:
Site levelling, groundworks, demolition, remediation.
Provision of small-scale infrastructure.
Highways works or other access challenges.
Addressing environmental constraints.
External works, substructure and piling.
Asbestos removal.
Sewer diversions.
Physical works for site activation (such as hoardings, welfare facilities, skips etc.) can be included but not any associated revenue costs.
Please contact me if you require more information or assistance with your BLRF application.
There is much more we are doing to assist Local Councils secure additional funding – including through the Green Heat Network Fund (GHNF). It all adds up!
‘Kunle Awofeso
