Agenda item

Update report of the Cabinet Member Housing and Safety

The Cabinet Member Housing and Safety introduced the report. The background to the report was that Council in February 2009 had approved a capital strategy which confirmed that Cheltenham Borough Homes (CBH) was its preferred development partner. In April 2009, Cabinet, in response to the capital strategy, agreed in principle to support the submission of grant funding bids to the Homes and Communities Agency (HCA). CBH had submitted a bid through a consortium with Bromford Housing to deliver affordable homes at a number of sites. Unfortunately the bid consequently submitted by the consortium was unsuccessful. Since then officers from CBH had been considering what alternative funding streams may be available to ensure that these sites can be delivered and working with council officers had considered a number of different options which were set out in this report.   The options covered plans for moving forward with three of the priority development sites at St Pauls phase 2, Cakebridge Place and four garage sites in the town. Cabinet would need to ensure that any proposals they finally endorsed would provide value for money and whether they became CBH or CBC properties.  As well as financial or viability matters, they would need to give due consideration to the social and environmental impacts of options available.

Cabinet Members felt this was very positive news for the town and represented a very significant development in meeting housing needs in the town. The Cabinet Member Finance and Community Development expressed concerns at the government's approach in encouraging applications for government funding on potential schemes, some of which may not be subsequently realised. The council may be in a position to benefit from this should they have schemes that are ready to be implemented.

RESOLVED THAT

1.1 CBH be approved to pursue the options as set out below, with a view to identifying a viable option for each site based on costs, designs, ownership and risks for approval by Cabinet.

i) St. Pauls Phase 2 – options one, two, three and four

ii) Cakebridge Place - options one, two, three and four

iii) Garages – options one and two (with the addition of grant if reallocation by HCA secured).

1.2. CBH be assisted in identifying the most viable option for each site, CBH be authorised to undertake any necessary procurement exercises to identify a suitable developer partner who will provide a developer grant and/or capital as required, provided that no partner shall be selected until a report on the preferred developer partner(s) and the appropriate value for money tests is approved by Cabinet.

1.3 Authority be delegated to the S151 Officer in consultation with the Cabinet member Housing and Safety, Cabinet Member Finance and Community Development and Director Commissioning to approve any submission by CBH to be the registered provider for the development at North Place based on a nil subsidy approach which secures good value for money for the council and for CBH.

1.4 It be noted that CBH will continue to pursue potential unallocated grant for those garage sites which have planning permission, with a reduced subsidy requirement aimed at HRA funding and will liaise with the relevant cabinet members and Ward Councillors as schemes become viable.

1.5 CBH be approved to employ contractors to carry out reactive repairs to CBC’s housing and authority be delegated to the Director of Commissioning in consultation with Cabinet Member Housing and Safety and the Borough Solicitor to amend the management agreement accordingly.