Decision

Salford City Council - Record of Decision (Cabinet)

I, Paul Dennett, City Mayor, in exercise of the powers contained within the City Council Constitution do hereby approve:

1. Salford City Council entering a Memorandum of Understanding (MOU) with the Ministry of Housing, Communities and Local Government (MHCLG) to participate in Round 4 of the Local Authority Housing Fund.
2. Delegation of authority to the Executive Director Place in consultation with the Section 151 officer to enter into relevant agreements with delivery partners for the use of Local Authority Housing Fund (LAHF) grant in accordance with the MOU between Salford City Council and MHCLG.
3. Delegation of authority to the Executive Director of Place in consultation with the Section 151 officer to enter into relevant agreements with delivery partners for Round 4 of the Local Authority Housing Fund (LAHF) in accordance with the Memorandum of Understanding between Salford City Council and MHCLG.
4. The authorisation for the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons are:

The City Mayor’s approval is required to grant approval to enter into a Memorandum of Understanding with MHCLG to deliver Round 4 of the Local Authority Housing Fund. The City Mayor’s approval is required to approve the appropriate delegations as outlined above to enter into agreements, MOUs and prepare the necessary documents.

Options considered and rejected were: No other options were presented as the funding opportunity is the only type of its kind.

Assessment of Risk: Low

The primary risks relate to:

• Delivery delays (acquisition, conveyancing, build completion)

• Failure to meet annual programme targets

• Potential grant clawback if conditions are not met

• Void periods before households are matched

Mitigation includes:

• A strong delivery track record

• Previous delivery of a mixed acquisition and new?build delivery model

• Availability of LAHF void cost cover for up to 56 days

• Flexibilities in Round 4 for interim use where required

The source of funding is: Ministry of Communities, Housing and Local Government.

Legal Advice obtained:

Supplied by: Kathryn Saldanha

·       Under the Salford City Council Constitution the Salford City Mayor has authority to take a decision agreeing to the Council becoming the ‘Accountable Body’ for any award of grant aid from an external funder to the Council where the grant aid to be received by the Council is anticipated to be £350,000k or over.

·       Under the Memorandum of Understanding (‘MOU’) which is to be entered into between the Ministry of Housing, Communities and Local Government (‘MHCLG’) and Salford City Council (‘the Council’), MHCLG has allocated a total of £5,141,837 of Round 4 Local Authority Housing Fund Grant (‘LAHF R4 Grant’) to the Council (comprised of a capital grant of £5,079,476 and a revenue grant of £62,360). The LAHF R4 Grant payments will be issued to the Council as grant payments under section 31 of the Local Government Act 2003 and payments will be made to the Council over the four Financial Years of the LAHF R4 Programme as detailed at Section 2 of this report. Under the MOU, which sets out the agreed working relationship between the MHCLG and the Council regarding the administration and delivery of the LAHF R4 Programme, the Council agrees to use the LAHF R4 Grant to fund the delivery of 45 LAHF R4 homes (“LAHF R4 Delivery Target”) as detailed at Section 2 of this report.

·       The MOU expressly states that the Council may pass on LAHF R4 Grant to a third party (e.g. Registered Providers) as appropriate to deliver the LAHF R4 Delivery Target. For Rounds 1 to 3 of the LAHF Programme, the Council has worked with delivery partners (ForHousing and Derive) to deliver the Council’s agreed number of LAHF homes. For Rounds 1 to 3 of the LAHF Programme, the Council has entered into Grant Funding Agreements with its delivery partners which require the Council’s delivery partners to comply with the terms of the relevant LAHF MOU (including obligations on the part of the delivery partners to ensure that each LAHF home is used for the specific purpose (e.g. Temporary Accommodation) that has been agreed under the relevant LAHF MOU).

·       For LAHF R4, the Council intends to continue to work with delivery partners to meet the Council’s LAHF R4 Delivery Target. The Shared Legal Service will ensure that the Council enters into appropriate Grant Funding Agreements with delivery partners which require the Council’s delivery partners to comply with the terms of the LAHF R4 MOU (including complying with the Subsidy Control Act 2022). With regard to compliance with the Subsidy Control Act 2022, it is likely that any Council Subsidy to delivery partners will be able to be made under the new Housing Streamlined Subsidy Route.

Financial Advice obtained:

Adam Mozley, Senior Accountant

·       The report is requesting approval to enter the Memorandum of Understanding (MOU) with Ministry of Housing Communities and Local Government (MHCLG) for Round 4 of the Local Authority Housing Fund (LAHF). Under LAHF R4, the council has been allocated £5,141,837 across the 4 year programme and MHCLG has accepted the Council’s plan to provide 45 homes through the programme.

·       Under the MOU, the council is responsible for managing the delivery of the agreed number of LAHF homes, and making sure the necessary governance and assurance arrangements are in place and that all legal and other statutory obligations are adhered to. Where the council is passing grant onto partners, the council requires partners to enter into grant funding agreements to ensure they use funding in accordance with requirements under the MOU and that the properties are used as LAHF homes.

·       Given the LAHF is a 4-year programme, unforeseen changes in the housing market may affect the ability to deliver the initial 45 units. This risk is mitigated by the work being done with partners at early stages to find suitable property types and price ranges where value-for-money should always be considered. The delivery of this programme will be monitored and reported to MHCLG

Procurement Advice obtained: N/A

HR Advice obtained: N/A

Climate Change Advice obtained:

In previous rounds, new build affordable homes delivered through the LAHF have been designed to exceed building regulations and energy standards. Homes acquired off the open market have had access to an additional refurbishment fund which can be used to improve energy efficiency measures and landlords will have to ensure that homes will adapt to changing regulations around energy and decency standards.

Contact Officer:  James Barrett           

Telephone number: 0161 603 6819

(Please delete from the list below any which are not relevant).

The appropriate scrutiny to call-in the decision is the Community and Neighbourhoods Scrutiny Panel

Signed:           P Dennett                                    Dated: 17.06.26                                                      .

                    City Mayor

For Democratic Services use only

This decision was published on 18.06.26                                           

This decision will come in force at 4.00 p.m. on 25.06.26                                                unless it is called-in in accordance with the Decision Making Process Rules.