Issue - meetings

(Housing Portfolio Holder) To consider the attached report (C-064-2015/16).

(1)        That, following approval of the Invest to Save proposal of £30,000 per annum for three years in order to provide landlord deposits to homeless applicants by the Cabinet at its meeting on 3 December 2015, it further be agreed that:

(a)        the agreed budget also be used for the provision of both landlord deposits and rental loans in appropriate cases for potentially homeless families with dependent children; 

            (b)        that both a rental loan and a landlord deposit loan be granted in       appropriate cases to disabled people and applicants with extreme medical             needs; 

            (c)        that amounts repaid by applicants should be re-cycled to provide    further             landlord deposit and rental loans (or both in accordance with (a) and             (b) above) to potentially homeless households; and     

            (d)        the Housing Select Committee be requested to undertake the review          of the Scheme referred to in the Cabinet’s previous decision (minute 113,         decision 2(b) refers).

The Housing Portfolio Holder presented a report on the ‘Invest to Save’ proposal concerning Landlord Deposits and Rental Loans to Homeless Applicants.

The Portfolio Holder reminded the Cabinet that it had agreed an ‘Invest to Save’ proposal at its meeting on 3 December 2015 of £30,000 per annum for three years to provide landlord deposits to homeless applicants. This would reduce the number of applicants being placed in costly bed and breakfast (B&B) and other temporary accommodation.

The Portfolio Holder was seeking the agreement of the Cabinet for the further use of the budget for the provision of both landlord deposits and rental loans for potentially homeless families with dependent children, and applicants with disabilities and extreme medical needs, which would generate substantial savings for the Council. Furthermore, it was suggested that the amounts repaid by applicants should be re-cycled to provide further landlord deposit and rental loans. Finally, the Housing Select Committee would be requested to undertake the review of the Scheme within the initial three-year period agreed at the meeting on 3 December 2016.

The Assistant Director of Housing (Housing Operations) added that the Council currently had approximately 25 applicants in Bed-and-Breakfast accommodation, the majority of whom were single applicants.

Decision:

(1)        That, following approval of the Invest to Save proposal of £30,000 per annum for three years in order to provide landlord deposits to homeless applicants by the Cabinet at its meeting on 3 December 2015, it further be agreed that:

(a)        the agreed budget also be used for the provision of both landlord deposits and rental loans in appropriate cases for potentially homeless families with dependent children; 

            (b)        that both a rental loan and a landlord deposit loan be granted in       appropriate cases to disabled people and applicants with extreme medical             needs;

            (c)        that amounts repaid by applicants should be re-cycled to provide    further             landlord deposit and rental loans (or both in accordance with (a) and             (b) above) to potentially homeless households; and

            (d)        the Housing Select Committee be requested to undertake the review          of the Scheme referred to in the Cabinet’s previous decision (minute 113,         decision 2(b) refers).

Reasons for Decision:

The provision of both landlord deposit loans and rental loans to potentially homeless families and those who were disabled or had proven extreme medical needs, would save the Council from providing more costly bed and breakfast accommodation. The re-use of any monies repaid by applicants for further landlord deposits and rental loans to homeless applicants would assist in reducing the overall cost of the scheme in future years.

Other Options Considered and Rejected:

To not grant both a rental loan and a landlord deposit loan in appropriate cases for potentially homeless families with dependent children, or to disabled people and applicants with extreme medical needs.

To not re-use amounts repaid by applicants to provide further rental loans and landlord deposit loans to potentially homeless households.

(Director of Resources) To consider the attached report (FPM-016-2015/16)

The Director of Resources presented a report on Invest to Save proposals, which were schemes that would reduce the Continuing Service Budget (CSB) in future years.

The Director of Resources advised that in setting the budget for 2015/16, the Council decided that, as the balance on the General Fund Reserve exceeded the minimum requirement and further savings were required, £0.5 million should be transferred from the General Fund Reserve into an Invest to Save earmarked reserve. A further  three proposals had been brought forward which included Rental Loans and Landlord Deposits for Homeless Applicants, Hillhouse Masterplanning Exercise and to appoint a consultant to review the management of off street car parks by the North Essex Parking Partnership (NEPP). It was appropriate at this stage to seek Member approval for the proposals and give Members the opportunity to put forward additional or alternative proposals.

1.         Rental Loans and Landlord Deposits for Homeless Applicants

The Assistant Director (Housing Operations) advised that Management Board had asked him to make a brief presentation to Members in order to explain the increased pressures on the Council due to homelessness.  It was reported that the Council’s Hostel at Norway House was full, along with Hemnall House, Epping and 20 Housing Association leasing direct properties for homeless applicants.  London Boroughs were now placing their homeless applicants in our District and paying private landlords incentives of between £1,000 to £3,000 which had made it difficult for the Homelessness Prevention Team to place our own homeless applicants in the private rented sector accommodation and Private landlords were now reluctant to accept Epping Forest Housing Aid Scheme (EFHAS) damage deposit bonds.  The numbers in bed and breakfast accommodation was also increasing and the Council’s housing stock was being increasingly used to house homeless applicants on non-secure tenancies.  The Council also had very few of its own properties becoming available to let.  Finally, the further risk to the Council was explained, whereby we were yet to hear from the Government if any grant would be provided next year for the Homelessness Prevention Service.

The invest to save proposal was for £90,000 over a 3 year period (£30,000 per year) for rental loans for homeless applicants and landlord deposits for homeless applicants where there were larger households.  This would assist the Council in trying to secure private rented sector accommodation in these cases.  Applicants would repay the loans on interest free basis over a 24 month period, consequently recycling the budget and enabling others to benefit from the Scheme in the future.

Councillor J Philip was concerned about the proportion of loans that were going to be received back. The Assistant Director of Housing Operations advised that recovery was very disappointing and around 10%. Various methods were used to recover the loans but the general nature of a homeless applicant meant that they moved around a lot and were very hard to trace.

Councillor D Stallan advised that as the Portfolio Holder for Housing, he was looking into other various solutions for  ...  view the full minutes text for item 31