Purpose

The aims of the business plan are to clearly set out our priorities for the management of our existing stock, describe how we are going to create new houses in the HRA, how we are going to fund it, and what the rents are going to be for the forthcoming year. The Business Plan is prepared annually but looks 30 years ahead in terms of modelling its cash flow.

Decision

DECISION:

RESOLVED:

1. That authority be delegated to the Strategic Director for Sustainable Growth and Development, in consultation with the Section 151 and the Portfolio Holder for Planning and Housing, to submit grant applications for the financial year 2024/25 and approve the acceptance of grants that are consistent with the delivery of the Housing Revenue Account Business Plan and provided that such applications are otherwise consistent with the Financial Regulatory Framework and that any match funding can be met from within the approved revenue or capital budget.
2. That authority be granted to the Strategic Director for Sustainable Growth and Development, in consultation with the Section 151 Officer, to authorise departures from the thresholds, as set out in the Code of Practice for Land and Property Transactions, to purchase additional newbuild or homes within warranty into the HRA for affordable housing, subject to completion of satisfactory due diligence, and consultation with the Monitoring Officer and the Portfolio Holder for Planning and Housing, such departures being limited to a maximum value of £3m in a single transaction or linked transactions (per vendor), and not to exceed £3m on any one site.
3. That authority be delegated to the Service Director for Planning and Housing, in consultation with the Portfolio Holder for Planning and Housing, the Section 151 Officer and the Monitoring Officer, to approve variations to the Management Agreement with Cornwall Housing Limited for the remainder of the term of the Agreement and any associated costs in relation to additional work undertaken by Cornwall Housing Limited on General Fund or HRA activity (as Cornwall Housing Limited manage both general fund and HRA housing assets on our behalf), subject to compliance with the Council’s Financial Regulatory Framework.
4. That the notion of Cornwall Housing Limited consulting the market with a view to entering into partnership contracts of up to 8 years for the delivery of the stock investment is supported in principle, but that entering into such contracts will need to follow the usual shareholder consent process, within approved budgets. 

RESOLVED TO RECOMMEND TO COUNCIL:

1. That the Housing Revenue Account (HRA) Business Plan and budget for 2024/25, as set out in Appendix 2 to the report, be approved. 
2. That both social and affordable dwelling rents for existing tenants increase by CPI (September 2023) plus 1% for the 2024/2025 financial year.
3. That both social and affordable dwelling rents for new tenants on new lets to be charged at formula rents for new tenants increase by CPI (September 2023) plus 1% for the 2024/2025 financial year.

Reason for the Decision: 

As contained within the report.

Alternative options considered:

None other than contained within the report.

Conflicts of interest declared:

None.

Dispensations granted in respect of a conflict of interest:

N/A