Issue - meetings

Report of the Cabinet Member Housing to be presented by the Cabinet Member Finance

(**Please note that in accordance with paragraph 3 Part 1 Schedule 12A Local Government Act 1972 any discussion on appendices 2 and 3 should take place in EXEMPT session**)

The Deputy Mayor took the chair for this item.

The Cabinet Member Finance introduced the report which sought approval from Council to authorise the allocation of up to £1,405,150 for the construction of eight new dwellings on three HRA garage sites- Rowanfield Exchange, Hester's Way Road and Ullswater Road. The scheme would provide 5 x 3 bed dwellings; 2 x 2 bed dwellings and 1 x 4 bed dwelling.

The Cabinet Member explained that the new build policy had delivered an impressive number of homes in the borough to date and this scheme was good news for the council and the town for the following reasons :

·         it made good use of council owned brownfield sites that were currently under-used and unproductive

·         it would deliver homes of a kind that were greatly needed in the town-good quality family homes, built to provide high standards combined with low long term maintenance costs and energy efficiency.

·         the development would have a positive impact on housing finances both in the short and long terms as it would deliver a positive cash flow from year 1 and also a very significant return on investment over 40 years

·         the new houses represented good value for money.  The build costs had been market tested through the tender process.

·         the scheme would make the best possible use of Right to Buy receipts. These receipts have to be spent within three years of receiving them and must be spent on providing additional affordable housing.   £420,000 of Right to Buy receipts would be put towards this scheme, with the balance being found from a combination of borrowing and new build reserves.

The Cabinet Member thanked Martin Stacy, Lead Commissioner, Housing Services and Cheltenham Borough Homes for the work they had put into this scheme.

The following issues were addressed :

·         The legal implications for third party risks had been given a high score on the risk assessment. The Cabinet Member clarified that this was due to potential Rights of Way legal issues. Currently the proposal was for up to 8 homes but this covered the scenario where there were insolvable legal problems which did not enable the council to develop 8 units.

·         Members welcomed the development of the garage sites in general and paid tribute to CBH who had in some instances gone over and above their remit. They also commended the high quality of housing provision and sustainability of the developments. One member suggested that CBH could consider developing its own in house team to build homes by working together with, for example, Gloucestershire College to take on apprentices. Members also paid tribute to CBH for its work on significant redevelopment of communal areas and the added social benefits that this work generated.

·         CBH was congratulated on its excellent consultation undertaken during the process of this particular scheme which was appreciated by ward councillors and residents alike

·         Concern was expressed with regard to current government policy on starter homes which was likely to have a detrimental effect on  ...  view the full minutes text for item 9

Report of the Cabinet Member Housing

(**Please note that in accordance with paragraph 3 Part 1 Schedule 12A Local Government Act 1972 any discussion on appendices 2 and 3 should take place in EXEMPT session)

RESOLVED THAT

1.    Subject to subsequent Council approval, the Authority be authorised to accept the tender received from J Harper and Sons enter into a JCT Design and Build Contract for the construction of up to eight new dwellings with Total Scheme Costs not to exceed £1,405,150.

2.    Authority be delegated to the Head of Property and Asset Management, in consultation with the Borough Solicitor to:

2.1. Conclude the JCT Design and Build contract with J Harper and             Sons.

2.2          Take all necessary steps and undertake all necessary procedures, including entering into any legal agreements or other documentation as may be required to implement or facilitate the developments.

3.    the Authority be authorised to charge Affordable Rents to the 2 and 3 bed properties at 80% of Market Rents and at 70% of Market Rents for the 4 bed dwelling.

Council be recommended to :

4.    Authorise the allocation of up to £1,405,150 for the construction of eight new dwellings.

5.    Note that the Total Scheme Costs of £1,405,150 (broken down in further detail in exempt appendix 3) will be funded by circa £420k of RTB receipts with the balance funded by the most appropriate combination of the other funding streams noted within the report – this decision being delegated to the Section 151 Officer in accordance with Financial Rules B7 and B8.

6.    Approves the Authority sourcing loan finance of up to £1.0m from the Public Works Loan Board to be used for the construction of eight new dwellings.

The Cabinet Member Housing introduced the report which sought approval to enter into a JCT Design and Build Contract with J Harper and Sons with Total Scheme Costs not to exceed £1,405,150. The scheme would deliver up to 8 new homes on three HRA garage sites. The scheme would provide 5 x 3 bed dwellings; 2 x 2 bed dwellings and 1 x 4 bed dwelling.

The Cabinet Member Housing reported that over the last five years more than 100 new council houses had been built providing much needed affordable homes in the town for which there was an expanding waiting list. This was a significant achievement.

The Cabinet Member Finance added that maximising the use of Right to Buy receipts was facilitating new build in the town by ensuring there was a positive impact on the HRA as quickly as possible.

Members noted the fact that the number of new social housing being built                                                                                  represented the highest level of provision in a generation which was a major achievement in the current economic and political circumstances. They commended the excellent consultation CBH had undertaken during the process of this particular scheme which was appreciated by ward councillors and residents. CBH and CBC officers as well as the Cabinet Member Finance were congratulated on their achievement of providing much needed housing in the town.

In summing up the Cabinet Member Housing thanked the Joint Programme Group which comprised CBC and CBH officers for its work.

The Leader noted that the report would be submitted to Council to approve the financial elements of the scheme.

RESOLVED THAT

1.    Subject to subsequent Council approval, the Authority be authorised to accept the tender received from J Harper and Sons enter into a JCT Design and Build Contract for the construction of up to eight new dwellings with Total Scheme Costs not to exceed £1,405,150.

2.    Authority be delegated to the Head of Property and Asset Management, in consultation with the Borough Solicitor to:

2.1. Conclude the JCT Design and Build contract with J Harper and             Sons.

2.2          Take all necessary steps and undertake all necessary procedures, including entering into any legal agreements or other documentation as may be required to implement or facilitate the developments.

3.    the Authority be authorised to charge Affordable Rents to the 2 and 3 bed properties at 80% of Market Rents and at 70% of Market Rents for the 4 bed dwelling.

Council be recommended to :

4.    Authorise the allocation of up to £1,405,150 for the construction of eight new dwellings.

5.    Note that the Total Scheme Costs of £1,405,150 (broken down in further detail in exempt appendix 3) will be funded by circa £420k of RTB receipts with the balance funded by the most appropriate combination of the other funding streams noted within the report – this decision being delegated to the Section 151 Officer in accordance with Financial Rules B7 and B8.

6.    Approves the Authority sourcing loan finance of up to £1.0m from the  ...  view the full minutes text for item 5