In March the authority gave £60,000 to enable an affordable housing scheme being developed by York Housing Association at Hinderwell Lane, Staithes to go ahead.
However, during the design process costs for changes to drainage have increased considerably, a report to the council’s cabinet member for stronger communities and housing, Coun Carl Maw, has revealed.
Today, Coun Maw agreed to grant an extra £10,000 from Section 106 funds to enable the project to progress.
A report prepared for Coun Maw stated: “YHA have subsequently considered a wide range of alternative drainage solutions, and have arrived at a preferred solution.
“However, this still considerably increases the overall development costs and have requested extra grant funding from the Council as part of a package of measures to meet the extra costs.
“As a result, the overall scheme cost has increased to £2.465 million as opposed to £2.063 million as reported in March 2020, which represents an overall increase of £402,000.”
The housing association is now taking steps to ensure the work progresses.
Speaking in March, Coun Maw said the housing was badly needed in Staithes.
He said: “It seems unfair that people living in villages like Staithes can be priced out of their housing market by people buying houses for holiday lets.
“This development is specifically for the residents of the Hinderwell area and the idea is that it will be affordable housing for those who live there.”