Issue - meetings

    Report by Corporate Director Alistair Cunningham

Councillor Richard Clewer presented the report seeking Cabinet endorsement of the bid submitted to Homes England for HRA Borrowing approval and for Homes England grant funding.  A successful bid would enable the delivery of 49 new affordable rented council homes and increase the HRA debt cap by £7.5m.

Councillor Clewer reported that the bid for HRA borrowing approval had to balance the competitiveness of the request for borrowing, the amount of HE social housing grant required and deliverability of the proposed developments. A fund of £200m was being made available to local Authorities outside London, that could demonstrate affordability pressures where average private sector rents are £50 a week more than average affordable rents. The bids would be assessed against the three criteria of: value for money, deliverability and affordability. The outcome of the bid was expected in Autumn 2018 and following this revised indebtedness determinations would be made for April 2019.

The Cabinet noted that the bid proposed the delivery of 49 units of accommodation across 16 sites, 14 of which were held in the HRA and two that were held in the Council’s general fund. The bid would increase the HRA debt cap from £127m to £134.5m, with a total scheme costs estimated to be £9.48m. This would be funded from £7.51m borrowing approval, £1.36m RTB receipts and £0.61m Homes England grant funding. All the schemes would pay back within 30 years and peak additional borrowing would be in 2020/21.

In response to a question raised by Councillor Stuart Wheeler about the Council’s ability to borrow funds against housing stocks, Councillor Clewer confirmed that the Council was considering potential opportunities in relation to this.

In response to a question raised by Councillor Ruth Hopkinson about the need for additional affordable housing in the north of the county, Councillor Clewer explained that, apart from the Salisbury area, the Council’s housing stock had been transferred to Housing Association’s and they also had the ability to bid for grant funding and develop the land in their ownership. Councillor Clewer further explained that once the outcome of the bid was known, Councillors would be able to suggest potential sites for development.

Resolved:

i)             To endorse the bid to Homes England for £7.51 million additional borrowing approval and £0.61m Homes England grant funding.

ii)            To endorse the use of £1.36 million Right to buy capital receipts to part fund the overall development, subject to the success of the funding bid.

iii)          To endorse a programme to develop 49 new affordable homes across 16 sites as set out in appendix A to the report, subject to the success of the bid and planning permission.

Reason for Decision:

The bid for funding if successful will deliver additional funding and borrowing approval to deliver 49 affordable homes across the County for people in housing need.