Agenda item

                 Report of the Chief Executive

Cllr Phil Alford, Cabinet Member for Housing, Strategic Assets and Asset Transferpresented the appendix to the report considered at agenda item 11 which detailed the following information:

·       Funding streams identified in the Council House Build Programme Phase 2, 3.1 and 3.2;

·       Sites identified for future housing

Resolved:

a)    To note the updates to Council House Build Programme (CHBP) phases 2, 3.1 and 3.2

b)    To agree to the increase in costs associated with Phase 3.1 to £21,950,972 and 3.2 to £20,446,014 with the understanding that the homes are early adopters for testing modern methods of construction
(MMC), whilst also developing homes to zero carbon standards. Budget will be pulled back from future years and the overall capital programme total remains unchanged.

c)    To agree the proposed budget of £20,000,000 for Phase 3.3 and 3.4 respectively. Budget will be pulled back from future years and the overall capital programme total remains unchanged.

d)    To delegate to Director of Housing and Commercial authority to seek planning permission for and to enter into contracts for professional services and construction of Phases 2, 3.1, 3.2, 3.3 and 3.4

e)    To delegate to Director of Housing and Commercial, in consultation with the Cabinet Member for  Housing, Strategic Assets and Asset Transfer the authority to purchase the freehold of land for the purposes of new build developments in relation to Phases 3.1, 3.2, 3.3 and 3.4.

f)     To delegate to Director of Housing and Commercial, in consultation with Cabinet Member for Housing, Strategic Assets and Asset Transfer the authority to make offers for affordable housing purchases to meet an identified housing need (i.e purchase single property from open market)
for Phase 3.1, 3.2, 3.3 and 3.4.

g)    To delegate to Director of Housing and Commercial, in consultation with the Cabinet Member for Housing, Strategic Assets and Asset Transfer the authority to make offers for affordable housing offered by developers in lieu of compliance with affordable housing obligations in Section 106 agreements in relation to phases 3.1, 3.2, 3.3 and 3.4

h)    To delegate to the Director of Housing and Commercial authority to make bids to Homes England for grant funding to assist with the financial viability of CHBP projects in phases 3.1, 3.2, 3.3 and 3.4 and to enter into funding agreements if the bids are successful

i)      To delegate to the Director of Housing and Commercial, in consultation with the Cabinet Member for Housing, Strategic Assets and Asset Transfer the authority to approve substitution of schemes identified in the CHBP Phase 2, 3.1 and 3.2 (as set out in Appendix 1) if, following more detailed investigation do not prove not to be viable. Substitution schemes must fit within the existing budget allowance.

j)      To delegate to the Director of Housing and Commercial authority to substitute and change funding streams as identified in CHBP Phase 2, 3.1 and 3.2 (as set out in Appendix 1 (part 2 paper)) to optimise financing of the CHBP.

k)    To commence consultation with the existing Sheltered Housing residents on the options for the future housing offer at the sites listed in appendix 2.

l)      To delegate to the Director of Housing and Commercial, in consultation with the Cabinet Member for Housing, Strategic Assets and Asset Transfer the authority to approve front-loading of funds into phase 3.3 and 3.4 where opportunities allow, with a reduction in funding in future years.

m)  To delegate to the Director of Housing and Commercial, in consultation with the Cabinet Member for Housing, Strategic Assets and Asset Transfer the authority for Financial Viability Appraisals to extend to a 40 year payback where necessary to deliver the Council Housing Build Programme with the increased requirements.

Reason for Decision:

A review of the Housing Revenue Account (HRA) business plan following the removal of the cap on borrowing enabled capacity to support a new build programme.

On 3rd November 2020, £195m was agreed by Cabinet within the HRA 30- year business plan. The proposals set out above enable the effective delivery of the new build programme within the agreed parameters. At this stage there is no request to change the total allocated funding of £195m, but to consider that costs within these early phases are higher whilst the Residential  Development Team explore new delivery mechanisms and technology. It is anticipated that these costs are expected to come down for the future phases when products have matured and become more common in the marketplace.