Agenda item

Housing Revenue Account new Build-Garage Site Redevelopments and the Use of Right to Buy Receipts

Report of the Cabinet Member Housing

Minutes:

The Cabinet Member Housing 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. He emphasised that since the council had started new build some 170 homes had been built under different ownership models. 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 providing up to 12 homes comprising a range of house types as follows : 6 x 3 bed 5 person dwellings; 2 x 2 bed 3 person flats and 4 x 1 bed 2 person flats.  Planning permission was granted for the redevelopment of the sites on 21 July 2016. The likely start date on site would be April 2017 with completion anticipated by summer 2018.

 

The Cabinet Member wished to put on record his thanks to all those who had been involved in developing these complex brownfield sites including Cheltenham Borough Homes and Onelegal.

 

Members welcomed the report and were encouraged by the proposed development. They made the following comments :

 

·         This was an excellent use of derelict, brownfield sites and of Right to Buy receipts providing valuable social housing.

·         The quality of build to date had been of a very high standard.

·         Consultation in some areas had not been as thorough as expected so in some cases support from neighbouring residents was lacking. However, in other areas consultation had been second to none with regular letter drops, public meetings, meetings with the site officer and consultation with ward Members. The Cabinet Member Housing undertook to follow up with CBH where consultation had been perceived to be poor.

·         It was asked whether the council could take such developments further in terms of encouraging private owners of derelict sites to sell their property to Cheltenham Borough Homes rather than be faced with enforcement and the land attractive to anti social behaviour and flytipping. This would also make a contribution to housing people. In response the Cabinet Member Housing explained that there was a funding cap imposed on the authority by central government which did not provide the council with much leeway in purchasing properties on the open market.

 

 

RESOLVED (unanimously) THAT

 

1.    Up to £1,772,000 be allocated for the construction of up to twelve new dwellings.

 

2.    It be noted 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.

 

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

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