Agenda item

Review of HRA Capital Programme relating to housing delivery, and to present a business case for the acquisition of 17 s106 Affordable Homes (report of the Assistant Director – Strategic Growth and Development enclosed).

Consideration was given to the report of the Assistant Director – Strategic Growth and Development which reviewed the HRA Capital Programme relating to housing delivery and presented a business case for the acquisition of 17 S106 Affordable Homes.

The Portfolio Holder for Strategic Housing, Leisure Centre Delivery and Spalding Town Improvement presented the report.  The following points were highlighted:

·       The Portfolio Holder for Communities and Operational Housing commented that as operational housing came within her remit, that the additional rental properties were very welcome. 

·       Members asked what forms of heating were in the properties – was the Council seriously considering other forms of renewable heating sources within future property purchases?

o   Officers responded that these properties had gas boilers. The Council would be looking at alternatives in the future – the Assistant Director for Housing would be able to provide members with more information on this topic.

·       Members responded asking if, in purchasing properties, the Authority was seeking to lead the way by influencing developers to consider alternative energy sources in future properties that they built.

o   The Leader did not disagree with this sentiment for the future.  Currently cost and affordability were the main issues – officers would be able to answer members questions regarding detail on the way forward.

At this point, members agreed that under section 100a (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following debate on the grounds that it involved the likely disclosure of exempt information as defined in paragraph 3 of part 1 of Schedule 12A of the act.

·       Members asked for confirmation that the developer whom the Council was buying the properties from had built all the affordable housing that they had been required to?

o   Officers provided information on what they believed the situation to be but commented that they would clarify the position with the relevant officer. 

o   Members commented that regardless of whether the properties were affordable homes or not, it was important that they were acquired for those that required them and that the Council was seen as the landlord of choice.

Following this discussion, the press and pubic returned to the meeting, prior to consideration of the recommendations detailed within the report.

RECOMMENDATIONS TO CABINET:

That Cabinet recommends to Council:

1)    To approve the business case and approve the acquisition of 17 affordable homes within Weston, for the HRA, subject to Council approval;

2)    To approve, and recommend to Council, the revised HRA capital programme as shown at Appendix B, including this scheme and the reprofiling of future years schemes, subject to Council approval;

3)    To approve and recommend to Council the reprofiling of funding for the HRA capital programme, subject to Council approval;

4)    To delegate to the Assistant Director Strategic Growth and Development, in consultation with the Deputy Chief Executive (Corporate Development) and S151, to agree the contractual matters (including the terms and conditions which may represent a minor variation to the scheme approved in the business case) such as signing the contract/transfer document and other incidental actions that may be required, and approving the associated due diligence and valuation required to purchase the properties, subject to Council approval .

RECOMMENDATIONS TO COUNCIL:

1)    To approve the business case and the acquisition of 17 affordable homes within Weston, for the HRA;

2)    To approve the revised HRA capital programme as shown at Appendix B, including this scheme and the reprofiling of future years schemes;

3)    To approve the reprofiling of funding for the HRA capital programme;

4)    To delegate to the Assistant Director Strategic Growth and Development, in consultation with the Deputy Chief Executive (Corporate Development) and S151, to agree the contractual matters (including the terms and conditions which may represent a minor variation to the scheme approved in the business case) such as signing the contract/transfer document and other incidental actions that may be required, and approving the associated due diligence and valuation required to purchase the properties.

(Other options considered:

·       Do nothing – in this event, the authority would not proceed to purchase the properties.  As a consequence, the expected benefits set out in the Reasons for Recommendations section of the report would not be realised.  Officers would seek to identify alternative, appropriate schemes for consideration by the Executive or Council.

Reasons for decision:

·       To enable new affordable homes to be delivered which met identified housing need in the district;

·       To provide a return on investment as set out in the financial evaluation provided at Appendix A to the report;

·       To replace homes sold to tenants via right to buy

·       To deliver housing solutions which met local needs and aspirations to ensure that residents had access to a range of housing options in the district).