Purpose

The additional funding is required due to significant increases in construction costs arising from inflationary pressures, market volatility, supply chain disruption, and wider economic conditions since the original scheme approval. The scheme was originally approved in 2021 with an LCC contribution of £2.56m. However, due to increased costs, the total scheme budget has risen substantially, requiring additional funding to ensure delivery. The decision enables LCC to secure long-term nomination rights within a strategically important Extra Care Housing and Community Supported Living scheme, supporting independence, wellbeing, and improved housing choice for older people and working age adults with disabilities. The investment is expected to deliver long-term revenue benefits through reduced reliance on higher-cost residential care placements, consistent with Adult Care preventative and demand management strategies. The decision is also consistent with previous Executive approvals which established: the principle of LCC capital contribution in return for nomination

rights (08/04/2015 delegation and 02/02/2021 approval), the use of a Funding Agreement/Nominations Agreement model, and the delegation of authority to the Executive Director for Adult Care and Community Wellbeing to finalise and enter into associated legal agreements.

Decision

To approve the award of an additional £359,970 by way of grant from the Adult Care Capital Programme for Lincolnshire to North Kesteven District Council (NKDC), through a Funding Agreement, to support the development of The Hoplands Housing Scheme in Sleaford. This funding contributes to securing nomination rights for Lincolnshire County Council for a period of 30 years on 40 extra care apartments and 11 apartments for Working Age Adults (51 in total), on a first refusal basis with no void risk.

Alternative options considered

Do nothing: Rejected as the scheme would not proceed without additional funding, resulting in loss of Extra Care Housing and supported living provision, reduced housing choice, and increased long-term revenue pressure on adult social care services. Re-procurement / alternative development model: Rejected due to programme delay risk, increased cost exposure, and loss of secured partnership arrangements with NKDC.