Agenda item

Report of the Cabinet Member Housing

The Cabinet Member Housing introduced the report and explained that in March 2015 Cabinet resolved that the Authority should seek bids from contractors to build new homes across Cheltenham on a number of garage sites. He stated that following a recent procurement exercise 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 £1,684,800.  He reported that the scheme would deliver up to ten new homes on four HRA garage sites, representing the first Council owned stock built since the late 1980’s. The Cabinet Member wished to put on record his thanks to officers both at the council and CBH for their hard work. These were complex redevelopments and Cheltenham was now leading the south west in the provision of affordable homes.

The Cabinet Member drew Members’ attention to section 6 of the report. He explained that the majority of the dwellings CBC proposed to build would be at 80% of market rent; however there was a risk that if the proposed 4 bedroom dwelling was set at the 80% level, then this would be unaffordable for larger households on low incomes. It was therefore proposed that this be set at 70 % of market rent.

Members supported the proposals. They recognised that whilst there were above average house prices there was no reduction in the number of people requiring affordable housing. It was important that sites continued to be brought forward for development and that market rents were affordable and fit for purpose.

The Leader reminded members that this report would be submitted to Council for approval.

RESOLVED THAT

1.    subject to subsequent Council approval, the Authority be authorised to accept the tender received from J Harper and Sons and enter into a JCT Design and Build Contract for the construction of up to ten new dwellings on the garage sites listed in section 2 of this report with Total Scheme Costs not to exceed £1,684,800.

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 including removing the Parkbury Close /Rowanfield Road site if planning permission is not granted;

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 all ten dwellings at 80% of Market Rents with the exception of the four bedroom dwelling proposed at Parkbury Close/Rowanfield Road. At this site authorise the Authority to charge 70% market rent. 

that Council be recommended to :

4.    Authorise the allocation of up to £1,684,000 for the construction of up to ten new dwellings on the garage sites listed in section 2 of this report.

5.    Note that the total scheme costs of £1,684,800 (broken down in further detail in exempt appendix 3) will be funded by circa £500k 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.    Approve the Authority sourcing loan finance of up to £1.0m from the Public Works Loan Board to be used for the construction of up to ten new dwellings on the garage sites listed in section 2 of this report.