Agenda item

(Finance Portfolio Holder) To consider the minutes of the meeting of the Finance & Performance Management Cabinet Committee, held on 6 March 2017, and any recommendations therein (attached).

Housing Revenue Account – Financial Options Review (Stage I)

(1) That, having considered the views of the Epping Forest Tenants & Leaseholders Federation and members of the Communities Select Committee, the continuation of the of the Council Housebuilding Programme up to at least Phase 6 of the current Programme and the reversion to the Government’s Decent Homes Standard (option 2 within the Housing Revenue Account Financial Options Review report prepared by SD Smith) be agreed as the preferred option;

(2) That the current moratorium on the Council Housebuilding Programme be lifted and that phases 4 – 6 of the current Programme be undertaken;

(3) That, if possible, the 1-4-1 Receipts ‘temporarily’ paid to the Department of Communities & Local Government be recovered as soon as possible in order to assist with the funding of the Council Housebuilding Programme;

(4) That financial contributions received by the Council from developers through Section 106 agreements, in lieu of on-site affordable housing provision, continue to be utilised for the Council Housebuilding Programme;

(5) That tenders be invited to undertake Phase 4 of the Council Housebuilding Programme;

(6) That the phasing of the Council Housebuilding Programme be appropriately paced with an acceptance that it was likely some 1-4-1 Receipts would still need to be paid to the Government, in view of the anticipated continuation of a high rate of 1-4-1 Receipts for the foreseeable future;

(7) That the Government’s Decent Homes Standard be reverted back to by the Council as soon as was practically possible, with reduced levels of stock investment, having regard to existing contractual commitments arising from framework agreements;

(8) That a report be submitted to a future meeting of the Finance & Performance Management Cabinet Committee by the Director of Resources on the most appropriate means to arrange the required additional Housing Revenue Account borrowing;

(9) That, at such time as the Cabinet considered the marketing strategy for the proposed sale of land at the Pyrles Lane Nursery development site in Loughton, consideration be given to whether the proposed sale should be subject to a requirement that the purchaser must enter into an agreement with the Council requiring the affordable housing element of the development to be sold to the authority on practical completion, and how this could be best practically achieved; and

(10) That SD Smith Consultancy Limited be requested to undertake Stage 2 of the Housing Revenue Account Financial Options Review at such time as a decision was made by the Government on the proposed introduction of the High Value Voids Levy, and that the Review report be submitted to the Cabinet Committee in order to consider the issues, implications and actions required to mitigate the assessed financial impact.

The Finance Portfolio Holder presented the minutes from the meeting of the Finance & Performance Management Cabinet Committee, held on 6 March 2017.

The Cabinet Committee had made one recommendation for the Cabinet to consider, concerning the Stage I Financial Options Review of the Housing Revenue Account. There had been no other issues considered by the Cabinet Committee.

Decision:

Housing Revenue Account – Financial Options Review (Stage I)

(1) That, having considered the views of the Epping Forest Tenants & Leaseholders Federation and members of the Communities Select Committee, the continuation of the Council Housebuilding Programme up to at least Phase 6 of the current Programme and the reversion to the Government’s Decent Homes Standard (option 2 within the Housing Revenue Account Financial Options Review report prepared by SD Smith) be agreed as the preferred option;