Issue - meetings

(Housing Portfolio Holder) To consider the attached report (C-060-2016/17).

(Housing Portfolio Holder) To consider the attached addendum report (C-060a-2016/17).

(1)        That the successful outcome of East Thames’ bid for funding to the Homes and Communities Agency (HCA) for its affordable housing development  at Knolly’s Nursery, Waltham Abbey be noted and that, as a result, it be further noted that East Thames had reluctantly advised the Council that it was unable to accept any grant from the Council, funded by “one-for-one replacement” Right to Buy capital receipts (“141 Receipts”), for this development;

(2)        That the consequential requirement for the Council to pay to the Department of Communities and Local Government (DCLG) unspent 1-4-1 Receipts that have to be spent by 31 March 2017 (currently estimated at £350,000), with interest, be noted;

(3)        That, in view of the continuing moratorium placed by the Cabinet on the Council Housebuilding Programme, the 1-4-1 Receipts previously paid “temporarily” and voluntarily to the DCLG from Quarters 1 and 2 of 2016/17, totalling £1.676million, continue to be retained temporarily by the DCLG until either;

                        (a)        The  Council  has undertaken Stage 1 of its Further Housing                        Revenue  Account  Financial  Options  Review  and,  in  particular,                      determined the future of its Housebuilding Programme; or

                        (b)  The DCLG allocates the Council’s 1-4-1 Receipts elsewhere for                         other purposes, as recently indicated by DCLG officials;

whichever is the earliest; and

(4)        That the Stage 1 Further Housing Revenue Account Financial Options Review be undertaken as soon as possible, in line with the process previously determined by the Cabinet.

The Housing Portfolio Holder presented a report concerning the potential payment of Housing Association grant to East Thames Housing Association.

The Portfolio Holder explained that the original report on this issue within the main agenda described a proposal for the Council to provide East Thames with grant towards the development costs for their affordable housing development at Knolly’s Nursery, Waltham Abbey. One of the benefits to the Council under the proposed arrangements would be that, in return, East Thames would purchase five properties from the open market and convey them to the Council without charge. However, the report also explained that East Thames had made a bid to the Homes and Communities Agency (HCA) for grant towards their development costs, on which a decision from the HCA was expected on 23 January 2017. If East Thames’ bid was successful, then they would not be able to enter into the proposed legal agreement with the Council. It was therefore stated that, in such an event, a supplementary report would be provided to the Cabinet on the outcome and the implications. 

The Portfolio Holder stated that East Thames had now informed the Council that its funding bid to the HCA had been successful and that, regrettably, they were now unable to enter into the proposed legal agreement with the Council. Therefore, the Council had little choice now but to accept that it was unlikely the unspent 1-4-1 Receipts would be spent by 31 March 2017 (currently estimated at £350,000) and would have to be paid over to the Department of Communities & Local Government (DCLG), with interest, at the end of the current Quarter. Moreover, it was now recommended that the 1-4-1 Receipts previously paid “temporarily” and voluntarily to the DCLG from Quarters 1 and 2 of 2016/17 should continue to be retained temporarily by the DCLG - until either the Council had undertaken Stage 1 of its Further Housing Revenue Account (HRA) Financial Options Review or the DCLG had allocated the Council’s 1-4-1 Receipts elsewhere for other purposes, whichever occurred the earliest. The first draft Stage 1 report of the Further HRA Financial Options Review was expected to be completed at the end of January 2017 and the final report would be reported to the Finance and Performance Management Cabinet Committee, following consultation with the Communities Select Committee and the Tenants & Leaseholders Federation as previously requested by the Cabinet.

Cllr Bassett stated that Councils were finding it virtually impossible to spend their 1-4-1 Receipts, and quoted the situation at Stevenage Borough Council as a further example of this. Cllr Bassett proposed that the Council should write to the DCLG to request the removal of conditions regarding the spending of 1-4-1 Receipts. The Housing Portfolio Holder informed the Cabinet that representations had been made to the Local Government Association regarding this issue, and the Assistant Director of Communities (Housing Property) stated that Officers had made those points directly to the DCLG.

In respect of any other options considered, and specifically the premium received  ...  view the full minutes text for item 125