The fate of plans to build 270 new homes on a flood-prone Hereford spot remains unclear, with just two-and-a-half months left to secure a £2 million grant to make it happen.

Herefordshire Council was awarded the cash from the government’s Brownfield Land Release Fund in October 2021 to bring in flood alleviation to Merton Meadow, land east of the A49 Edgar Street currently largely used for parking.

This would “unlock” 270 new homes, mostly of mixed affordable tenure, as well as creating more attractive and biodiverse public spaces, the council said at the time.

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“Without this funding to undertake flood alleviation works the land cannot be used for residential development,” it added.

The idea was restated in the draft city masterplan, published a year ago, which proposes building affordable and market homes, retirement and student living and commercial units on council-owned land, “including the car park at Merton Meadows”.

A council spokesperson confirmed that this “key site” remains part of the masterplan, which “is due to be consulted on in early 2024”, adding that it “still has the £2 million grant funding available”.

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But the Government department now responsible for the fund has said Herefordshire Council “are required to release the land for housing by 31 March 2024” – otherwise it “may seek repayment”.

Asked what would constitute “releasing the land for housing” under the terms of the fund, a spokesperson for the Department for Levelling Up, Housing and Communities explained this would mean either a contract, development agreement or building licence with a delivery partner, or land transfer to them; transfer to a local authority housing delivery vehicle or joint venture; or building actually having begun on-site.

The council has yet to clarify which of these criteria it expects the site to meet.

Merton Meadow was spared the most recent flooding in the city earlier this month. But the area did flood in 2007, 2008, 2012 and 2019.