Purpose

In March 2023, it was announced that the Local Authority Housing Fund would be expanded by £250m for a second round of funding (LAHF R2), with the majority of the additional funding used to house those on Afghan resettlement schemes (ARAP/ACRS) currently in bridging accommodation and the rest used to ease wider homelessness pressures.

Thanet has been identified as eligible for capital grant funding with an indicative allocation of £694,000 in funding to purchase 4 homes for the resettlement element and 1 home for the Temporary Accommodation element.

A Memorandum of Understanding was returned to the Department for Levelling Up, Housing and Communities (DLUHC) in August 2023 which registered the council’s interest in the scheme. In order to utilise the grant It will be necessary to match fund the acquisitions with £788,860k of additional borrowing within the HRA capital programme. The properties must be purchased by 31st March 2024.

Decision

Cabinet approved the purchase of the 5 homes in line with the grant guidelines of LAHF R2.

Reasons for the decision

These recommendations will enable the council to purchase the units for Affordable Housing and participate in the Local Authority Housing Fund Scheme.

Alternative options considered

Council could decide to not purchase the identified units as part of the Local Authority Housing Fund. This option is not recommended as it would require the council to seek alternative units, which would put our compliance to complete on purchases by 30th March 2024 at risk. We would then have to advise the central government that we are unable to participate in the scheme and the allocated grant funding will not be taken up.