The report has been circulated with the Cabinet Agenda for its meeting on 17^th January 2019. The relevant Minute and report has been referred direct to the Policy & Resources Scrutiny Committee for consideration.

The Committee considered Minute 612 of Cabinet held on 17^th January 2019 which had been referred direct to the Policy and Resources Scrutiny Committee together with a report of the Deputy Chief Executive (People). This provided an overview of the future phases of the HRA Land Review project and requesting agreement to progress with Phases 3 and 4 of the project, to fund and construct 56 units of affordable housing and undertake feasibility studies for Phases 5 and 6 of the project.  The report also sought agreement to undertake Modern Methods of Construction (MMC) pilot projects across 2 garage sites and develop a Land Purchase Fund using existing S106 contributions.

In response to questions regarding the report, the Cabinet Member for Adults and Housing confirmed the following:-

·           in the context of this report, ‘affordable housing’ means Council housing for rent at locally affordable rent levels

·           the Council will continue to undertake the necessary business case assessment on any future disposals of isolated housing assets in the General Fund, to identify whether they can be used for housing

·           if the modular build is successful, this will be tested on larger scale.

Resolved:-

That the following decisions of Cabinet be noted:-

“1. That sites be brought forward within Phases 3 and 4 of the HRA Land Review.

2. That further feasibility work be undertaken on a number of sites that will form Phases 5 and 6 of the HRA Project.

3. That the proposed method of funding for the projects and the use of S106 funds for the feasibility  works for Phases 5 and 6, to a maximum of £50,000, be endorsed.

4. That the options for the delivery of 2 garage sites for Modern Methods of Construction (MMC) pilots be investigated, including undertaking a procurement exercise of solutions put forward by the market and also a value for money exercise.  Furthermore, to explore subsequent pilot sites to test Modern Methods of Construction on a broader scale, including Lundy Close.

5. That the use of S106 contributions received from developers, in order to facilitate the provision of affordable housing through the creation of an ongoing fund for the purchase of developable land in the borough, be endorsed.”

Note: This is an Executive Function

Cabinet Member: Cllr Cox

Report of Deputy Chief Executive (People) to follow

The Cabinet considered a report of the Deputy Chief Executive (People) providing an overview of the future phases of the HRA Land Review project and requesting agreement to progress with Phases 3 and 4 of the project, to fund and construct 56 units of affordable housing and undertake feasibility studies for Phases 5 and 6 of the project.  The report also sought agreement to undertake Modern Methods of Construction (MMC) pilot projects across 2 garage sites and develop a Land Purchase Fund using existing S106 contributions.

Resolved:

1. That sites be brought forward within Phases 3 and 4 of the HRA Land Review.

2. That further feasibility work be undertaken on a number of sites that will form Phases 5 and 6 of the HRA Project.

3. That the proposed method of funding for the projects and the use of S106 funds for the feasibility  works for Phases 5 and 6, to a maximum of £50,000, be endorsed.

4. That the options for the delivery of 2 garage sites for Modern Methods of Construction (MMC) pilots be investigated, including undertaking a procurement exercise of solutions put forward by the market and also a value for money exercise.  Furthermore, to explore subsequent pilot sites to test Modern Methods of Construction on a broader scale, including Lundy Close.

5. That the use of S106 contributions received from developers, in order to facilitate the provision of affordable housing through the creation of an ongoing fund for the purchase of developable land in the borough, be endorsed.

Reasons for decision:

There is an established need for affordable housing within the borough as demonstrated by the local strategic housing market assessment (SHMA), and by our own Housing Register data.

Other options:

Do nothing – This option considered leaving the existing garage areas in their current state.  This would not improve community safety or reduce antisocial behaviour.  It would also not help the Council to meet its 2050 Vision or contribute to the 2050 road map.

Transfer the land to a Registered Provider – This approach would mean a loss of a capital assets and potential future revenue income to the HRA.

Sale of sites on the Open Market – This option would allow some sites to be sold on the open market with the receipts reinvested in the HRA, potentially to be used for future housing development phases.  This approach would mean a loss of potential future revenue income to the HRA.

Note: This is an Executive Function

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox