THE £5.8 million Nappers Wood redevelopment scheme suffered yet another setback this week, as Chichester District Council once again refused to provide any money to meet the £1.7 million shortfall.
At a meeting of the executive on Tuesday, the council gave approval for 25 new homes on the site, subject to funding from the local housing authority.
But it turned down two proposals for additional funding, for either £1,310,000 or £500, 000.
The current planning application is to demolish 54 Cornish-style homes and 32 garages, and to build 26 three-bedroom houses, 21 two-bedroom houses, 12 two-bedroom bungalows, and 20 two-bedroom flats, all with associated car parking and landscaping.
The £1,310,000 would allow the replacement of 16 of the Cornish-style bungalows with 17 homes, and the refurbishment of 13 existing homes.
The alternative £500,000 was for the refurbishment of 29 homes.
Martlet Homes, the housing association in charge of the project, was advised to add the 25 homes to the redevelopment scheme in November.
The council said that it would not consider releasing funds unless more use was made of the site.
Chief executive Martin Ward told The Herald that he was "very disappointed" with the council's decision.
"There's absolutely no doubt that the council is not in support of putting its own money into this," he said. "
If the housing authority doesn't provide the money, the council said it would review its position, but it would have to go back to the chief executive, which could mean a delay."
Mr Ward said that the council turned down a number of other potential solutions that Martlet came up with.
"We also suggested a 50/50 split of £650,000 each, but it turned that down," he said.
"The council was very luke warm on another idea, to sell on some of the houses to cross subsidise the bungalows. Basically it has lumbered us with the whole thing."
The first phase of refurbishment was due to start in October, but residents may have to wait even longer before the project can begin.
"We've started doing modernisation on the strength that we can't proceed with the first phase of the main redevelopment until we know what the funding situation is," Mr Ward explained.
"We will maybe find out in the next few weeks but it could be a month."
Mr Ward said that if there was no more money for the scheme, then Martlet has got a "really big problem".
"But we're not envisaging that we won't get the money," he said.
"We may have to consider either retreating back to the refurbishment scheme, or take money away from other projects to use as subsidy, but we would have to consult our tenants on that extensively."
Mr Ward said that despite the setback, he was still optimistic.
"We have taken a bit of a chance to keep the ball rolling," he added.
"We are disappointed not to have been able to get the money from the council, but we will continue to do our best to do the right thing."