Agenda item

Report of the Cabinet Member Housing

In the absence of the Cabinet Member Housing the Leader introduced the report and explained that in March 2015 Cabinet resolved that the authority sought bids from contractors to build new homes across Cheltenham on a number of garage sites. This report sought approval to enter into a JCT Design and Build Contract with J Harper and Sons with Total Scheme Costs not to exceed £1, 772, 000. The scheme would deliver up to twelve new homes on three HRA garage sites.

The Leader explained that whilst the council’s preferred option was to build affordable homes on council owned land, the complex nature of some of these sites meant that it may not always be possible to spend Right to Buy Receipts in this way due to the government imposed time limits on the use of these receipts. It was therefore proposed that any Right to Buy Receipts that could not be used for building new affordable homes on council-owned land be used instead for purchasing dwellings, subject to appropriate parameters. To date three homes had been purchased this way, with a further four homes in the pipeline following Cabinet approvals in November 2015 and September 2016 to use Right to Buy receipts for this purpose. The Leader clarified that the report would be forwarded to Council for authorisation of the allocation of funding for the construction of the twelve dwellings and approval of sourcing loan finance from the Public Works Loan Board. He wished to put on record his thanks to all those who had been involved.

Members welcomed the report and were encouraged by the proposed development. It was agreed to amend the second recommendation to include consultation with the Cabinet Member Housing, which would be particularly relevant if the number of dwellings changed. A Member commented on the benefit the developments on garage sites had brought to those areas and praised CBH, the council and the contractors for their work with those communities. The care and attention paid to the neighbours during the construction phase had been much appreciated and hoped this approach would continue.

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 twelve new dwellings with Total Scheme Costs not to exceed £1,772,000. 

2.    authority be delegated to the Head of Property and Asset Management, in consultation with the Borough Solicitor and the Cabinet Member Housing 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.

2.3  Agree the final number of dwellings that will be built, in the event that the council is unable to proceed with the development of all twelve new dwellings because of site complications (such as unresolved rights of way issues).

3.    authority be delegated to the Head of Property and Asset Management, in consultation with the Section 151 Officer and Cabinet Member for Housing, to use the Right to Buy Receipts to purchase dwellings that are considered suitable for use as affordable housing (in accordance with the parameters set out within paragraph 5.4 of this report) PROVIDED THAT the Head of Property Services is satisfied it would not be possible to use these receipts to support the approved delivery of new affordable  housing on council owned sites due to time restrictions on the use of these receipts and PROVIDED FURTHER that the expenditure remains within Council approved budgets for the use of delivering new affordable housing.

4.    the Borough Solicitor be authorised to negotiate and complete such documents as she deems necessary or desirable to conclude the transactions negotiated by the Head of Property and Asset Management.

5.    the Authority be authorised to charge Affordable Rents to all dwellings.

that Council be recommended to :

6.    Authorise the allocation of up to £1,772,000 for the construction of up to twelve new dwellings.

7.    Note that the Total Scheme Costs of £1,772,000(broken down in further detail in exempt Appendix 3) will be funded by circa £531,000 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.

8.    Approves the Authority sourcing loan finance of up to £1,200,000 from the Public Works Loan Board to be used for the construction of twelve new dwellings.