Issue - meetings

Acquisition of properties

Meeting: 17/12/2019 - South Holland District Council (Item 87)

Standing Order 29 - Reference back to Cabinet from the Council meeting on 27 November 2019, in respect of acquisition of market dwellings to provide new affordable housing for the HRA

Report of the Portfolio Holder for Housing and Health and Executive Director Commercialisation (S151) – Acquisition of Properties

 

NOTE: Any comments from the Cabinet meeting held on 17 December 2019 will be reported during consideration of this item.

 

Additional documents:

Minutes:

Consideration was given to the report of the Portfolio Holder for Housing and Executive Director – Commercialisation (S151) which reviewed the feedback from the Council meeting on 27th November 2019.

 

Under Standing Order 29 of the Constitution the Council, at its meeting on 27th November 2019, requested that the recommendations made by Cabinet at its meeting of 29th October 2019 be reconsidered.

 

At its meeting on 17th December 2019, Cabinet re-approved its original decision with an additional decision to prepare a draft policy to establish the parameters for the type of investment deemed appropriate for each vehicle.

 

In considering the issue, the Cabinet concluded that it should not change its original decisions for the following reasons:

 

·         The reasons set out at section 6 of the confidential report.

·         There is a need for HRA properties in Donington with families waiting for social housing.

·         The recommendation increases the supply of new homes immediately. 

·         The competition for S106 housing is significant.

·         If sold under Right to Buy, the properties would have likely increased in value, mitigating the potential discount after Year 15.

·         There is a significant homelessness issue.  The acquisition of HRA dwellings enables families to be moved from temporary accommodation.

·         Further information received on the modelling reinforces that this would be the right decision socially and financially.

·         The dwellings are ready to be occupied, subject to due diligence.

·         The Housing Register is ready to allocate families.

·         The decision is not simply about the best financial model, the Cabinet is also mindful of the social cost of insufficient social housing.

·         The concerns raised at Council in respect of lack of detail have been responded to in the report.

·         Where the Council has disposed of garage sites, these have been remote sites to the main dwellings.

·         There are currently 12 households on the register for this type of property in Donington, this is an increased number on those previously reported.

 

DECISION:

1)    That the project and its budget, as an approved HRA scheme within the Capital Programme for 2019/20 and the associated funding arrangements be approved.

 

 

 

 

 

 

A recorded vote was requested in accordance with Standing Orders:

 

Name

For

Against

Abstain

 

 

 

 

Alcock B

 

ü   

 

Astill J R

ü   

 

 

Avery J E

Apologies

Apologies

Apologies

Beal A C

ü   

 

 

Biggadike F

ü   

 

 

Bingham H J

ü   

 

 

Booth

 

ü   

 

Brewis C J T H

 

ü   

 

Carter T A

ü   

 

 

Casson A

ü   

 

 

Coupland P E

 

 

ü   

Cronin A C

ü   

 

 

Drury H T

ü   

 

 

Gambba-Jones

ü   

 

 

Gibson R A

ü   

 

 

Grocock R A

Apologies

Apologies

Apologies

Hasan M

ü   

 

 

King J

ü   

 

 

Lawton C J

ü   

 

 

McLean J D

ü   

 

 

Newton A M

ü   

 

 

Pepper N H

ü   

 

 

Porter G A

Apologies

Apologies

Apologies

Redgate P A

ü   

 

 

Reynold J L

Apologies

Apologies

Apologies

Scalese G T D

Apologies

Apologies

Apologies

Seymour M D

Apologies

Apologies

Apologies

Slade S

Apologies

Apologies

Apologies

Sneath E

Apologies

Apologies

Apologies

Taylor G J

ü   

 

 

Tennant

 

ü   

 

Tyrrell J

Apologies

Apologies

Apologies

Walsh

 

 

ü   

Wilkinson  ...  view the full minutes text for item 87


Meeting: 17/12/2019 - Cabinet (Item 66)

66 Standing Order 29 - Reference back to Cabinet from the Council meeting on 27 November 2019, in respect of acquisition of market dwellings to provide new affordable housing for the HRA

Report of the Portfolio Holder Housing and Health and the Executive Director Commercialisation (S151) – Acquisition of properties

Additional documents:

Minutes:

Consideration was given to the report of the Portfolio Holder Housing and Health and the Executive Director Commercialisation (S151) – which, in accordance with Standing Order 29 (reference back to Cabinet from the Council meeting 27 November 2019) reviewed feedback and explored options in respect of acquisition of market dwellings to provide new affordable housing for the HRA.

 

In considering the issue, the Cabinet had regard to the content of the report and concluded that it should not change its original decision taken on 29 October 2019 for the following reasons:

 

1.    The reasons set out at section 6 of the confidential report.

2.    There is a need for HRA properties in Donington with families waiting for social housing.

3.    The recommendation increases the supply of new homes immediately. 

4.    The competition for S106 housing is significant.

5.    If sold under Right to Buy, the properties would have likely increased in value, mitigating the potential discount after Year 15.

6.    There is a significant homelessness issue.  The acquisition of HRA dwellings enables families to be moved from temporary accommodation.

7.    Further information received on the modelling reinforces that this would be the right decision socially and financially.

8.    The dwellings are ready to be occupied, subject to due diligence.

9.    The Housing Register is ready to allocate families.

10. The decision is not simply about the best financial model, the Cabinet is also mindful of the social cost of insufficient social housing.

11. The concerns raised at Council in respect of lack of detail have been responded to in the report.

12. Where the Council has disposed of garage sites, these have been remote sites to the main dwellings.

13. There are currently 12 households on the register for this type of property in Donington, this is an increased number on those previously reported.

 

 

 

 

DECISION:

 

a)    To approve the business case relating to acquisition of seven homes for the HRA.

b)    Subject to Council approval of the recommendation to Council below, to delegate the detail of agreeing the contract and reviewing the due diligence to the Executive Director – Commercialisation (the S151 Officer) in consultation with the Portfolio Holder for Housing and Health, and to complete on the purchase.

c)    To instruct officers to prepare a draft policy which sets the parameters for the type of investment deemed appropriate for each delivery vehicle.

 

 

RECOMMENDATION TO COUNCIL:

 

d)    To identify this project and its budget, as an approved HRA scheme within the Capital Programme for 2019/20 and approve the associated funding arrangements.

 

(Other options considered:

·         To progress the purchase of 7 homes, with 4 being delivered as market rented housing through Welland Homes and 3 being delivered as Affordable Rented housing for the HRA;

·         To progress the purchase of 4 homes, but with a view to deliver those homes as market rented housing through Welland Homes

·         Not proceed with the acquisition

Reasons for recommendation:

·         To provide direction on the next steps concerning the potential investment in properties at Donington)  ...  view the full minutes text for item 66