Agenda item

To seek approval from Members to proceed with the acquisition of seven additional temporary homes, and three homes for the Afghan Resettlement Scheme, including approval for the capital funding required to make up the remaining cost after the grant awarded is considered and the commuted sums.

The Housing Options Managerwas invited by the Chair to introduce the report.  The Council had received a grant of £1,783,052 from the Ministry of Housing Communities and Local Government ringfenced for the acquisition of seven two-bedroom temporary accommodation homes to fulfil the Council’s statutory rehoming duties, and three additional properties, consisting of two three-bedroom and one four-bedroom homes, for the Afghan Resettlement Scheme.  Approval was sought to proceed with the acquisition of the properties, including the approval of the capital funding required to make up the remaining cost of the grant awarded and a commuted sum contribution of £630,000 towards the cost.  The maximum cost officers were seeking from additional funding would be £1,469,600.

          The recommendation was proposed by Councillor Bicknell and seconded by Councillor Yeates.

          The Chair invited questions and comments from members.  Members congratulated officers for the successful funding bid, which would save money for the Council in the long run.  Responding to a question regarding the expected length of stay in temporary accommodation before permanent accommodation was provided, the Housing Options Manager explained that the Council worked with other housing associations and confirmed that residents in temporary accommodation were given priority so they spent less time in temporary accommodation. Views were expressed that it could be unsettling to be placed in a nice new house and then be told they were moving on again and another view was expressed that the quicker permanent accommodation was found the quicker they could put their roots down.  The Housing Options Manager replied that it was difficult to quantify but considered that if they were temporarily housed for a short time and received their permanent home sooner that was a positive.  It was confirmed that if a family had to leave their home due to a flooding incident the Council would provide housing to those affected by a natural disaster.

          Clarification was sought as to whether or not the Council was allowed to use funding received from Section 106 monies towards the provision of temporary accommodation.  If Section 106 monies were used to fund the project would this result in a reduction in the amount of affordable housing being delivered in the District?  The Group Head of Housing Communities and Wellbeing advised that no issues had been raised during the approval process undertaken with the Council’s Section 106 and Commuted Sums staff officer concerning the use of Section 106 monies for temporary accommodation.  He undertook to clarify the position with the staff involved  in the process. In response to a further question asked about the consequences for the Council if it used the money it had been given for affordable housing to provide temporary accommodation resulting in the provision of less affordable homes, the member was advised that officers would look into this matter and would respond would of the meeting.  The Housing Options Manager advised that the three Afghan Resettlement Scheme homes would become social housing and part of the Council’s housing stock.   The Chair agreed with the Group Head of Housing Communities that recommendation c) approves use of £630k affordable housing receipts, if approved would be subject to the Group Head looking into the concerns raised by members regarding the use of Section 106 monies for temporary accommodation and confirming it was lawful.

          A member suggested that a member briefing on temporary accommodation process would be welcome.  The Group Head Housing, Wellbeing and Communities agreed to take the suggestion for a briefing forward.

          The Committee  

RESOLVED to

a)      Approve the LAHF award of £1,783,052 to acquire seven additional homes for use as temporary accommodation and three for the Afghan Resettlement Scheme of which £1,771,000 relates to the capital purchase.

b)      Approve the use of HRA borrowing as match funding of a maximum £1,469,600.

c)      Approve use of £630k affordable housing S106 receipts, subject to the Group Head of Housing, Communities and Wellbeing confirming that the use of S106 receipts for temporary accommodation was lawful.

d)      Subject to recommendation (e), approves the acquisition of ten new homes for up to a maximum total cost of £3,870,000 for use as temporary accommodation and for the Afghan Resettlement Scheme and in accordance with the LAHF grant conditions; and

e)      Delegates authority to the Group Head of Finance (Section 151 Officer), in consultation with the Chair of this committee, and the Group Head of Housing, Wellbeing and Communities to provide final written approval of the acquisition subject to the Group Head of Finance being in receipt of a positive financial appraisal.

f)       Notes that an appraisal of the LAHF scheme will be brought to this committee once it is completed and in use.

RECOMMENDS TO THE POLICY AND FINANCE COMMITTEE that it

g)      Recommends to Full Council to include this scheme within the Council’s capital programme at a total cost of £3,870,600 with £1,771,000 capital funding from central government grant, £630,000 from Section 106 receipts and £1,469,600 to be funded by the Council through additional borrowing.