Agenda item

Report of the Cabinet Member Housing and Safety

Having declared personal and prejudicial interests in this item Councillors Driver, C Hay, Smith and Williams left the room and did not participate in the debate.

The Cabinet Member Housing and Safety introduced the report and explained that this constituted the last strand of work in the St Paul’s regeneration project. Prior to the construction phase commencing, this report concerned funding allocations and approval required, including loan arrangements.

In terms of overall project loan finance, CBC would apply for this via the Public Works Loan Board and then advance these funds with the appropriate agreements in place to CBH. Repayment of this finance would be met from the net rental income over the longer term.

The Cabinet Member Housing and Safety referred to concerns previously expressed by Members relating to the risk of losing the HCA grant. He reported that this risk remained until the project was complete. This was due to the fact that there was a different mechanism for paying the grant. He reassured Members that all possible factors that could result in delays had been identified and were being monitored via robust project management.

The Cabinet Member paid tribute to the hard work being undertaken by CBH officers on this project and made reference to the award CBH had received at a national housing awards ceremony. He also highlighted the fact that CBH had obtained finance of nearly £4 million in a very difficult financial climate.

In response to a question the Cabinet Member Housing and Safety clarified that the term of the loan period was 40 years.

A member paid tribute to the work CBH had done in levering in funding and suggested that CBH be involved in the JCS policy to raise more affordable housing in the town. In response the Cabinet Member Housing and Safety explained that CBH was currently looking at its whole strategy to add to its housing stock.

RESOLVED THAT

1.      The use of £100,000 from usable capital receipts arising from HRA asset disposals that the Council has previously resolved to apply to the provision of affordable housing be approved. This subsidy is to be used to support the affordable housing build element of the St Paul’s Phase two development

2.      The Authority sourcing loan finance of up to £2.3m from the Public Works Loan Board be approved and that the sums be advanced to CBH to be used for the construction of the affordable housing units to be comprised within the St Paul’s phase two development. And that a payment guarantee be authorised to the contractor in respect of the building contract.

3.      A loan agreement be entered into with CBH to a maximum of £2.3m, repayable from the net rental stream from the affordable housing properties

4.      The use of an additional £50,000 be approved from usable capital receipts arising from HRA asset disposals that the Council has previously resolved to apply to the provision of affordable housing for the site assembly, thus increasing the associated budget from £450,000 to £500,000

5.      Authority be delegated to the Director of Resources in consultation with the Borough Solicitor to agree the terms of the loan agreement between the Council and CBH and financial contractual agreements between the Council, CBH and the contractor.