This matter will be referred direct by Cabinet, at its special meeting taking place on 6^th October 2020, to the Scrutiny Committee for consideration.  The relevant Minute of Cabinet will be circulated in due course, prior to the meeting of the Scrutiny Committee.

The Committee considered Minute 407 of Cabinet held on 6th October, 2020, which had been referred to the Scrutiny Committee for consideration.  The Committee also had before it the report of the Executive Director (Finance & Resources) providing an update on the provision of an additional 100 affordable homes for social rent and sought approval  to enter into and execute the legal agreement to secure the homes.

Resolved:-

That the following decisions and recommendation of Cabinet be noted:

“1. That it be noted that the Legal Agreement (“the Agreement”) that has been negotiated by the Council, Swan Housing Association and Porters Place Southend on Sea LLP as set out in the submitted report is now completed to secure the additional 100 affordable homes for social rent.

2. That authority be delegated to the Executive Director (Finance & Resources) and Director of Housing in consultation with the Leader to:

a) Review and, if applicable, approve any offer made under the Agreement to acquire or gap fund with nomination rights any of the 100 additional affordable homes;

b) Settle and complete the value for money terms of each acquisition or gap funding with nomination rights, within the approved capital investment programme budget;  and

c) In the event of an acquisition option being selected, to agree and procure the management arrangements for these units.

Recommended:-

Note: The decisions in 1 and 2 above constitute an Executive Function. The decision in 3 above constitutes a Council Function.

Cabinet Member: Councillor Gilbert

Report to follow

Further to the meeting of the Cabinet held on 30^th June 2020, consideration was given to a report of the Executive Director (Finance and Resources) providing an update on the provision of an additional 100 affordable homes for social rent and sought approval  to enter into and execute the legal agreement to secure the homes.

Resolved:

1. That it be noted that the Legal Agreement (“the Agreement”) that has been negotiated by the Council, Swan Housing Association and Porters Place Southend on Sea LLP as set out in the submitted report is now completed to secure the additional 100 affordable homes for social rent.

2. That authority be delegated to the Executive Director (Finance & Resources) and Director of Housing in consultation with the Leader to:

a) Review and, if applicable, approve any offer made under the Agreement to acquire or gap fund with nomination rights any of the 100 additional affordable homes;

b) Settle and complete the value for money terms of each acquisition or gap funding with nomination rights, within the approved capital investment programme budget; 

c) In the event of an acquisition option being selected, to agree and procure the management arrangements for these units.

Recommended:

Reasons for recommendations:

1. Securing the additional 100 affordable homes supports the additional commitments as agreed at Full Council held on 21^st February 2019 (Minute 737) to secure additional affordable housing and to deliver more affordable homes in the Borough.

2. The delegations provide for the Council to act expeditiously and at pace with regards to securing the additional affordable housing for social rent.

Other Options

1. Not approving the completion of the Agreement would have a negative impact on the Council’s affordable housing supply and therefore it would not meet one of the requirements of the Project to maximise affordable homes nor would it remove the need for the Council to deliver more affordable homes in the Borough and further would not support the additional commitments as agreed at Full Council (Minute 737).

2. An alternative option could be to acquire units that come to market at the time and then designate as social housing. This would be subject to market conditions, as does the current proposal but without certainty that the Council would be offered these units and also potentially at a higher cost to the Council.

Note: The decisions in 1 and 2 above constitute an Executive Function. The decision in 3 above constitutes a Council Function.

Referred direct to: Place Scrutiny Committee

Cabinet Member: Cllr Gilbert