Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 24, 2024

Purpose: To provide an update and summary of the Local Authority Housing Fund programme, round 1 and 2, and to accept the allocated funding under the Local Authority Housing Fund (LAHF) Round 3.

Content: The Cabinet considered a report of the Director of Economy and Place / Cabinet Member for Regeneration and Housing, which sought approval to accept and spend the Local Authority Housing Fund, Round 3 (LAHF3).   The Head of Strategic Housing (People) and the Principal Officer (People) were in  attendance to present the information and to answer the questions of the Cabinet Members.   Officers informed that the Local Authority Housing Fund, round 3 (LAHF3) had been launched in March 2024. The details of the fund had been shared with the Council in the document ‘Local Authority Housing Fund - third funding round: Prospectus and Guidance’ (‘the Prospectus’) (background papers).   Local Authority Housing Fund, Round 3 (LAHF3) provided £450 million for a third round of funding used to deliver high-quality temporary accommodation for homeless families, and to provide housing for those on the Afghan Citizens Resettlement Scheme (ACRS). Initial allocations for LAHF R3 had been made to 203 local authorities (LAs), using an allocations formula.   The Council was one of the 203 selected local authorities to receive funds.   Cabinet was asked to accept and spend grant funding awarded from Ministry of Housing, Communities and Local Government (MHCLG) to deliver LAHF 3 in line with the agreed criteria and target.   The Department of Levelling Up Housing and Communities (DLUHC) had introduced the Local Authority Housing Fund, under which DLUHC provided partial grant funding to support the purchase of local housing.   The Council had previously participated in LAHF rounds 1 and 2. The intention of LAHF 1 had been to help councils obtain accommodation for families with housing needs who had arrived in the UK fleeing the war in the Ukraine and those on Afghan resettlement and relocation schemes. For LAHF 2, the scheme had been widened to address wider homelessness pressures and to house those on Afghan resettlement schemes. However, due to the limited criteria and short timescale to achieve the target, only 2 properties had been delivered and consequently funds were returned to central government.   Resolved: 1.    That the Grant allocation of £1,106,686 be accepted. It be noted that the total allocation comprises the capital grant of £1,099,048 and the revenue grant of £7,638 to deliver 11 homes as per the Local Authority Housing Fund (3) programme and as part of the Council’s existing capital acquisitions programme; 2.    That the Head of Strategic Housing (People) be authorised to accept the Memorandum of Understanding and return a completed copy back to the Department for Ministry of Housing, Communities, and Local Government for the Local Authority Housing Fund (3). The MOU was not intended to create legal or binding obligations. It described the understanding between both parties for the use of funding Appendix 1 of the report; 3.    That the Director of Economy and Place in consultation with the portfolio holder for Regeneration and Housing be given delegated authority for expenditures under the Local Authority Housing Fund (3); 4.    That the delivery model and the acquisition of 11 properties through the Council’s Empty Properties programme, and ‘off the peg ’‘purchases from recently approved large developments be agreed; 5.    That the Assistant Director of Legal & Governance be authorised to undertake necessary legal work in connection with the properties and execute such documents on behalf of the Council; 6.    That the Director of Economy and Place in consultation with the s151 officer be authorised to approve the purchase of the specified properties; 7.    That it be noted that the Council was unable to deliver round 2 of LAHF, and completed 2 properties from round 1; 8.    That it be noted that Grant funding for undelivered properties in round 1 and 2 would be returned to government.   Reason for decision: On the 18th October 2022 Rochdale Council at a full council meeting passed a motion to effectively declare a housing emergency. There was an immediate imperative to limit the use of bed & breakfast emergency housing provision, to speed development of housing on unused land and look at developing its own housing stock in future The Council had core statutory housing duties, particularly relating to the provision of housing as per Part VII of the Housing Act 1996 and the Homelessness Reduction Act 2017 The delivery of this programme would give Rochdale Council additional housing supply, and support the acute pressures the Council faces with the demand on homelessness and housing need. LAHF R3 is a £450m grant fund, with objectives to: ·         Reduce local housing pressures and use of expensive and unsuitable accommodation, by providing better quality temporary accommodation to those owed homelessness duties by local authorities. ·         Reduce temporary accommodation costs. ·         Provide sustainable settled housing to those on ACRS so that they can build new lives in the UK, find employment and integrate into communities. ·         Support local housing markets by assisting the delivery of new housing stock or new developments to grow overall housing supply. This funding would allow the Council a timely opportunity to address the acute pressure and housing challenges by providing capital grant funding to develop cost-effective, high quality accommodation. This accommodation could fill gaps in provision and reduce reliance on privately managed unsupported temporary accommodation such as B&B. There were very limited alternatives in the current context and housing landscape.   Alternatives considered and rejected: To not accept the Local Authority Housing Fund Round 3 allocation would increase homelessness presentations to the authority by displaced Afghanistan households. There were very limited alternatives in the current context and housing landscape. Although this was a small number of properties, it would allow the Council to build stronger partnerships with delivery partners and build on the agreed delivery vehicle, and potentially open up for more investment and funding opportunities from Central government. The Council could choose not to sign the MoU and participate in this round of the scheme. However, the LAHF scheme provided an opportunity for the Council to utilise government funding to purchase property for housing, which supported the Council’s efforts in fulfilling the UK’s humanitarian duties to assist those fleeing war, and also to support the Corporate plan objectives regarding housing. It was therefore recommended that the Council participated in the scheme.