The Scottish Government has struck a £10million funding deal with Aberdeen City Council (ACC) to help residents affected by reinforced autoclaved aerated concrete (Raac) in the Balnagask area.
More than 500 homes contain the potentially dangerous material, and the money is intended to ease the financial pressure on the council and homeowners.
Housing Secretary Màiri McAllan confirmed that the council had been invited to apply for the support through the Affordable Housing Supply Programme. She said this would “create the headroom for the council to meet the cost of remediation from within its own budget, as is the correct approach.”
Ms McAllan added: “In 2016 the Scottish government committed to funding ACC through the Housing Infrastructure Fund. While the council’s request for £10million did not meet the criteria for that fund, in light of the unique circumstances we have invited the local authority to seek support through the Affordable Housing Supply Programme.”
She said she recognised “how worried residents were” and understood the financial burden facing the council.
The local authority has welcomed the move. ACC said it “welcomed the invitation to bid for the funds and looked forward to discussing how they could be used.”
Demolition work on affected properties is set to go ahead, but some private homeowners have so far rejected offers from the council, arguing that valuations are too low.