Minute 76

Referred direct by Cabinet

The Committee considered Minute 76 of Cabinet held on 25^th June 2019, which had been referred direct by Cabinet to Scrutiny together with a report of the Deputy Chief Executive (People) which provided an update on two key elements of the Housing, Homelessness and Rough Sleeping Strategy, namely housing supply and a proposed Acquisitions Programme for Council Housing.

Resolved:

That the following decisions of Cabinet be noted:

1.     That the work to develop a regeneration framework and pipeline of housing and regeneration projects, including the potential to establish a revolving investment fund to deliver the pipeline, with a report coming forward to Cabinet in September 2019, be agreed.

2.     That the process for responding to third party approaches is agreed for implementation.

3.     To proceed with the Acquisitions Programme for Council Housing as agreed in the Council’s Housing, Homelessness & Rough Sleeping Strategy.

4.     That a capital budget of £4.3M be created within the Housing Revenue Account (HRA) capital programme for 2019/20 to facilitate the Acquisitions Programme, funded 30% from retained Right to Buy Capital receipts and 70% from HRA Capital Investment Reserve.”

Resolved:

That the following recommendation of Cabinet be noted:

Note: The decisions in 1-4 above constitute an Executive Function. The decision in 5 above constitutes a Council Function.

Cabinet Member: Cllr Gilbert

Report of Deputy Chief Executive (People)

The Cabinet considered a report of the Deputy Chief Executive (People) providing an update on two key elements of the Housing, Homelessness and Rough Sleeping Strategy, namely housing supply and a proposed Acquisitions Programme for Council Housing.

Resolved:

1.     That the work to develop a regeneration framework and pipeline of housing and regeneration projects, including the potential to establish a revolving investment fund to deliver the pipeline, with a report coming forward to Cabinet in September 2019, be agreed.

2.     That the process for responding to third party approaches is agreed for implementation.

3.     To proceed with the Acquisitions Programme for Council Housing as agreed in the Council’s Housing, Homelessness & Rough Sleeping Strategy.

4.     That a capital budget of £4.3M be created within the Housing Revenue Account (HRA) capital programme for 2019/20 to facilitate the Acquisitions Programme, funded 30% from retained Right to Buy Capital receipts and 70% from HRA Capital Investment Reserve.

Recommended:

Reasons for Decision:

The Acquisitions Programme for additional council housing is recommended as 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 Homes Seeker’s Register data.

The formation of an Acquisitions Programme for council housing would result in an increase in the levels of affordable housing in the short term. This increase in the Borough’s affordable housing stock may assist in reducing reliance on more expensive temporary accommodation.

Other Options:

Do Nothing – This option considered not creating an Acquisitions Programme. This approach however would result in a repayment of Right to Buy funds to HM Treasury, would not increase council housing stock and would also not help the Council to meet its 2050 Vision or contribute to the 2050 road map.

Transfer the funds as grant to a Registered Provider (RP) – This option would see the Right to Buy funds given to RP’s as a grant to build affordable housing, with nomination rights given to the Council. This approach would not however be achievable in the given timescales.

Note: The decisions in 1-4 above constitute an Executive Function. The decision in 5 above constitutes a Council Function.

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Gilbert