Decision details

(1)        That the following sources of funding be utilised, in addition to the loan provisions received from the Public Works Loan Board, to provide the required subsidies for the Council’s Housebuilding Programme:

(a)        capital receipts from additional Right to Buy (RTB) sales, that must be utilised for new housebuilding (in accordance with the Council’s agreement with the Department of Communities and Local Government (DCLG)); 

(b)        all current and future financial contributions received by the Council from developers to fund affordable housing, through Section 106 Agreements, in lieu of the on-site provision of affordable housing;

(c)        capital receipts from the sale of HRA land or buildings, where the Cabinet has specifically agreed that they should be used to help fund the Council Housebuilding Programme (including the capital receipts already allocated by the Cabinet to the Housebuilding Programme from the sale of Leader Lodge, North Weald and land at Millfield, High Ongar);

(d)        any grant received from the Homes and Communities Agency (HCA) in the future, to fund the Housebuilding Programme; and

(e)        any other external funding sources (e.g. the Harlow Growth Area Fund);

(2)        That the use and provisional level of subsidy required for proposed developments be authorised through the signing-off of their financial appraisals, which shall include details of the estimated level of subsidy required;

(3)        That, once the Cabinet Committee has authorised the use and provisional level of subsidy required for individual developments and/or development packages, the Director of Housing be authorised to allocate funding from the sources listed in (1) above to individual developments and/or development packages – utilising the most appropriate source of funding for the development(s), having regard to the time limits within which they must be utilised - up to and in excess of the provisional level approved by the Cabinet Committee, once tenders to undertake the works have been received from contractors, subject to:

(a)        the amount allocated being no more than 15% of the level provisionally approved by the Cabinet Committee;

(b)        sufficient funds being available at the time of allocation; and

(c)        the Cabinet Committee receiving a report to its next meeting on the amount of subsidy allocated, and its source of funding;

(4)        That a standard report be received by the Cabinet Committee at each meeting, setting out the current position with regard to funding from the sources listed in (1) above, showing the availability, use and commitments to date; and

(5)        That, if the sources of funding listed in (1) above have been exhausted during the course of the Housebuilding Programme, a report be submitted to a future meeting of the Cabinet on the possible sale of some of the potential development sites earmarked for the Programme, with or without planning permission, to generate capital receipts to provide a form of cross-subsidy to continue with the Housebuilding Programme.