Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: September 17, 2024

Purpose:

Content: RESOLVED: Cabinet; 1.     Recommend to Full Council to agree an additional Capital Programme budget of £5.488m to deliver the LAHF R3. 2.     Recommended to Full Council an increase in the total Capital Programme budget of £9.578m, that is funded by £4.089m of LAHF R3 Grant and £5.488m of the additional budget required to deliver the programme. 3.     Approved the Council to enter into a Memorandum of Understanding with MHCLG to participate in LAHF R3.   REASONS RESOLVED:   1.     The funding on offer through the LAHF R3 programme offers a good level of external funding towards property acquisitions (between £52,000 and £145,000 per property depending on size, and an additional £21,000 per property for refurbishment. There will also be resource funding and a ten percent uplift in grant for new builds delivered). The LAHF grant will provide immediate support to the Temporary Accommodation (TA) pressures faced by the Council whereby a larger percentage of the grant is allocated for the acquisition of TA and a smaller percentage allocated to support the Afghan Citizen Resettlement Scheme (ACRS). The properties acquired from the LAHF programme will form part of the general needs housing stock in the medium/long term once its conditions have been satisfied. These properties will support the Council’s housing and homelessness responsibilities for the remainder of their lifetime. 2.     An increase to the capital programme is being requested to enable completion of the LAHF R3 programme within the required timeframes. To achieve the LAHF R3 programme targets it will be necessary for the Council to continue and undertake some direct purchases from the open market but to also work with Registered Providers (RP) and developers to secure new homes. 3.     The Finance Team have completed modelling within the HRA and set parameters for ceiling purchase prices within the LAHF R3 programme to ensure that the scheme ‘breakeven’ or payback within the expected timeframes agreed in the HRA and are therefore capable of paying off borrowing over the 40-year business planning period. 4.     The timescales for West Northamptonshire Council for LAHF R3, are to confirm its intention to deliver LAHF 3 and its allocation by the 16th August 2024. Once received by MHCLG, the Council will be expected to sign a Memorandum of Understanding (MoU) by the 16th September 2024 to be formally awarded the funding. We will be seeking an extension of the deadline until after the 17th September (date of Cabinet) whereby the turnaround of the MoU was delayed by the temporary halt of the LAHF R3 programme due to the General Elections.   ALTERNATIVE OPTIONS: WNC could choose to not draw down the LAHF R3 monies, but this would lead to additional revenue spend and pressure on budgets in relation to procurement of temporary accommodation to house those who may arrive in the area through resettlement programmes and are threatened with or have become homeless. This would also mean WNC would be declining funds being made available to help relieve the significant pressures in TA costs that the Council are presently experiencing, and the opportunity to increase Council stock to support local housing needs in the medium/longer term once LAHF conditions have been satisfied