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 congratulated CBH in what they had achieved to date and it was hoped that there would be more new build going forward as this was desperately needed in the town. Some Members commented on the high standard of the developments to date. It was suggested that in the future CBH should look at its own in house team to develop “shared equity”. A member also mentioned “sweat equity” whereby tenants or part owners provided labour for their share of the housing equity. CBH should also be encouraged to look at ever greener houses and showcase what they are able to achieve and push harder to be even better and more innovative in its approach. CBH was commended for its record for taking on apprentices in the repairs team.

The Cabinet Member Housing informed Council that CBH was envied across ALMOs for its achievements in the regeneration of St Pauls. He reported that in the light of the recent budget announcement there would be a refresh of the HRA business plan later in the year in order to determine innovative ways to progress.

RESOLVED (unanimously) THAT

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

2. It be noted 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.

3. the Authority be approved to source 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.