Purpose

1.    
Approval to enter into contract with RH Fulwoods to
construct 10 new homes in East Herringthorpe.
2.    
That 40% of the project cost is funded by Right to
Buy ‘1-4-1’ receipts.
3.    
The homes are let on Social Rents in-line with the
strategic preference to maximise affordability for
residents.

 
The East Herringthorpe scheme
forms part of the Housing Delivery Programme and was first approved
by Cabinet via the September 2020 Cabinet report: Annual Housing
Development Report – 2020/21.
 
Cabinet approvals have been
reaffirmed in further programme reports, with the latest iteration
of the programme being approved by Cabinet January 2023: Housing
Development Programme Report – 2023/24.
 
The scheme will deliver 10 new
homes which will be brought into the Council’s housing stock
and made available for rent to applicants on the housing register.
It will comprise:
·      
3nr 1-bed houses
·      
4nr 2-bed houses
·      
2nr 2-bed bungalows
·      
1nr 4-bed specialised bungalow (also referred to as
a wheelchair user dwelling)
 

Decision

RECORD OF OFFICER EXECUTIVE DECISION

 

Date of Decision:

2
June 2023
 

Title:

East
Herringthorpe Small Sites Housing Development
 

Decision Maker:
(Including Job
Title)

James Clark, Assistant Director of Housing
 
 

Details of Specific Cabinet
Delegation
or Delegation contained in the
relevant Sub-Scheme of Delegation.
 

Enaction of recommendation 1 from the September 2020 Annual
Housing Development Report.
 
The
Cabinet, 21 September 2020, minute 52(1):
 
That
Cabinet approves the release of the Council owned sites listed in
Appendix 3a for early residential development, subject to
development being undertaken directly for council stock with the
Council retaining ownership of the land and homes, or by a
registered social landlord with the Council retaining tenancy
nomination rights where this is deemed to offer better value, and
subject to written confirmation of agreement by the relevant Ward
Members.
 
The
September 2020 report marked the launch of an annual programme
reporting cycling, with the latest iteration of the programme
having been most recently considered by Cabinet January
2023.
 
The
Cabinet, 23 January 2023, minute 104(1):
 
That
Cabinet approved the Council-owned sites listed in Appendix 3 being
brought forward to deliver new Council homes.
 
and
further to approval of the subsequent Full Business Case –
East Herringthorpe Small Sites Cluster Housing Development,
approved 2 June 2023 in consultation with the Cabinet Member for
Housing.
 

Decision:

Approval to enter into contract with
RH Fulwoods to construct 10 new homes
in East Herringthorpe.
 
That
40% of the project cost is funded by Right to Buy
‘1-4-1’ receipts.
 
The
homes are let on Social Rents in-line with the strategic preference
to maximise affordability for residents.
 

Reasons for the
Decision:

The
decision has been taken in-line with the Cabinet approval, to
ensure that the Council can continue to deliver new council homes
to meet residents’ needs.
 
Right to Buy ‘1-4-1’ receipts will form the main
subsidy contribution toward this scheme because:

a)   
The homes
are high specification and there is an acute viability gap which
will be best met through the inclusion of RTB 1-4-1 receipts which can contribute up to 40%
of the cost

b)   
RTB
1-4-1 receipts are timebound, meaning they
have to be deployed within a set
timeframe otherwise they are repaid to government

c)   
The
government has recently introduced a cap on the number of
acquisitions which can be funded with RTB 1-4-1 receipts, meaning that more receipts need
to be deployed into Council build schemes
 
Social Rents are lower than Affordable Rents and it is the
Council’s strategic preference to make council homes as
affordable for our residents as possible, meaning that the homes
are to be let on Social Rents rather than Affordable Rents. Whilst
this impacts upon scheme viability, it is considered that this
approach can be supported for this scheme, within the context of
the longer-term Housing Revenue Account (HRA) Business Plan.
 

Details of alternative
options considered and rejected:

The
September 2020 Cabinet report considered a
number of alternative options, including not to bring
forward any new proposed housing development schemes. This was not
recommended because it would not achieve any of the benefits
provided by supporting housing growth, would make it significantly
more difficult for the Council to achieve its corporate and
national targets and means that there would be no mitigation
against Council’s social housing stock being lost
as a result of the Right to
Buy.
 

Conflicts of interest
declared by any Cabinet Member consulted by the decision maker
which relates to the decision:

None
declared

Dispensations
Granted:
(If any)

N/A
 

Reports or parts of
reports considered

Report of the Strategic
Director of Adult Care, Housing and Public Health
–
Annual Housing Development Report –
2020/21 (original
report).
 
Report of the Strategic
Director of Adult Care, Housing and Public Health
–
Housing Development Programme Report –
2023/24 (latest
report).
 
Full
Business Case – East Herringthorpe Small Sites Cluster
Housing Development.
 

 
I
certify that this is a true record of the executive decision to
….
 
Enter
into contract to with RH
Fulwoods to construct 10 new homes in
East Herringthorpe.
 
Signed by the Decision Maker  

 
 
Dated:         
16.06.2023
 
Name:         
James Clark 
                    
Job
Title:    Assistant Director of
Housing