Purpose

Cabinet is recommended to:

• Note the expansion of the council’s strategic partnership with the Greater London Authority (GLA) to accelerate delivery of affordable homes and Inclusive Growth on council and wider sites across the borough

·         Note the councils housing delivery schemes to be progressed for grant funding via the GLA London and Affordable Homes Programme 

• Agree that the Council enters a Memorandum of Understanding with the Ministry of Housing, Communities and Local Government in respect of funding for 77 Affordable Homes 62 for Temporary Accommodation and 15 for Refugee Resettlement.
• Approve the acquisition of a minimum of 77 Affordable Homes.
• Approve any unspent budget and grant funding can be used to acquire further properties and/or to refurbish existing Council owned long terms void properties. The final terms to be delegated to the Corporate Director of Housing, in consultation with the Commercial Director, Property and Delivery, and the Strategic Director of Resources and Director of Governance and Law.
• Delegate to the Corporate Director of Housing, in consultation with the Strategic Director of Resources and Director of Governance and Law authority, the decision to determine the most appropriate method through which the Council will provide the accommodation. This will be through the creation of a local lettings policy (if so advised) and amendments to housing policies which govern the letting of properties by the Council.  This may include consideration of using fixed-term tenancies. 

Decision

Cabinet:

(1)            approved the council’s approach to the application for the GLA Social and Affordable Homes Programme (LSHAP). Noting the intention to apply to enter into a strategic partnership with the GLA to bring forward a long-term pipeline of affordable housing schemes on both council and wider land;

(2)            noted both the council and wider schemes to be put forward as part of the LSHAP programme;

(3)            agreed that the council enters into a Memorandum of Understanding with the Ministry of Housing, Communities and Local Government in respect of the £18.2m grant funding and approve the acquisition of a minimum of 77 properties, (or such greater number as can be acquired to utilise the grant), 62 to use for temporary accommodation and 15 for refugee resettlement;

(4)            approved prudenital borrowing of £13.2m in the General Fund towards the purchase and refurbishment cost of the 62 properties to be used as Temporary Accommodation;

(5)            approved prudential borrowing of £3.8m in the Housing Revenue Account towards the purchase and refurbishment cost of 15 properties to be used as resettlement accommodation for refugees;

(6)            delegated authority for the final terms of the acquisitions to the Corporate Director Capital Delivery and Estates;

(7)            delegated authority to the Strategic Director of Resources, in consultation with the Strategic Director of Place, to periodically review the updated financials for the scheme and ensure that the proposals remain affordable and financially sustainable for the Housing Revenue Account and General Fund and to fully utilise any remaining grant funding to maximise value to the council; and

(8)            delegated authority to the Corporate Director of Housing, in consultation with the Strategic Director of Resources and Corporate Director of Governance and Law, the decision to determine the most appropriate method through which the council will provide the accommodation. This will be through the creation of a local lettings policy (if so advised) and amendments to housing policies which govern the letting of properties by the council. This may include consideration of using fixed-term tenancies.

Options & Alternatives Considered

Do nothing – Accommodate households in privately sourced temporary accommodation, followed by Private Rented Sector Offers (PRSO) once secured, privately sourced temporary accommodation is a costly option and there is no certainty that suitable PRSOs can be secured given current challenges in the rental market.

Do minimum – Acquire fewer properties and potentially return some of the grant. There will still be a need to use privately sourced temporary accommodation followed by PRSO.

Preferred option – Acquire a minimum 77 properties across the borough. This will provide additional affordable homes and reduce the need for privately sourced temporary accommodation