Your council
Agenda item
Leader Lodge - High Road, North Weald
- Meeting of Cabinet, Monday 11th June 2007 7.00 pm (Item 11.)
- View the declarations of interest for item 11.
- View the background to item 11.
(Housing Portfolio Holder) To consider the attached report (C/005/2007-08).
Decision:
(1) That the improvement and conversion of Leader Lodge, North Weald into four self contained flats, together with the development of an annexe comprising at least two self contained flats within the grounds of Leader Lodge in partnership with one of the Council’s Preferred Registered Social Landlord (RSL) Partners be sought;
(2) That the new and converted flats be sold on a shared-ownership basis, as a low cost home ownership initiative for first time buyers in the District who are unable purchase a property on the open market;
(3) That, in order to ensure maximum value for money, one of the Council’s Preferred RSL Partners be selected by the Housing Portfolio Holder to undertake the development following a competitive process based upon:
(a) the plans formulated by the Council’s architect:
(b) the proposed amounts to be paid to the Council by the RSLs; and
(c) any other material considerations considered appropriate by the Housing Portfolio Holder;
(4) That the selected Preferred RSL Partner be required to;
(a) produce and submit the detailed planning application at its own cost and risk; and
(b) submit a bid to the Housing Corporation for social housing grant (SHG) funding, which the Council will support;
(5) That, subject to the receipt of planning permission and the RSL undertaking the approved development, the freehold of Leader Lodge and the associated land be sold to the selected Preferred RSL Partner, after the outcome of the Housing Corporation Bidding Round is known, for its tendered sum; and
(6) That any capital receipt be utilised to provide local authority social housing grant to an RSL to facilitate the provision of affordable housing on another site, and that the Housing Portfolio Holder be authorised to approve its most appropriate use, in terms of the site and RSL.
Minutes:
The Housing Portfolio Holder presented a report regarding Leader Lodge, High Road, North Weald. Leader Lodge had originally been a detached house purchased by the Council and converted into 2 two bedroomed flats. Until 2002, the flats had provided tied accommodation for the manager and Deputy Manager of nearby Norway House, the Council’s homeless Persons Hostel, until it had been decided that staff no longer needed to live “on-site”. Since then, the two flats had been used to accommodate two homeless families on non-secure tenancies. Following the vacation of the hostel management staff, a proposal to provide four flats and a small annexe of two new flats, linked with a communal entrance/stairway, had been agreed by the former Housing Portfolio Holder in March 2004. However the planning application had been refused in June 2006 on the grounds that it was out of character with the surrounding properties.
As a consequence, three options had been identified for the site: to continue to provide 2 two-bedroom rented flats occupied by secure tenants allocated in accordance with the Housing Allocations Scheme; to sell the building and grounds on the open market to provide a capital receipt, which could be used to provide further affordable housing within the District; or conversion of the existing building to provide 4 one bedroomed flats and the provision of a small annexe of 2 two bedroom flats, linked with a new communal entrance/stairway, and to sell the building and associated land to one of the Council’s preferred Registered Social Landlord for let at affordable rents, or for sale on a shared ownership basis.
To assess the most cost effective option, consultants had been appointed to undertake a financial appraisal of the available options as well as a comparison with the status quo. The appraisal concluded that the RSL development Option for shared ownership was the most viable, as it would deliver a capital receipt to the Council, improve the current building, and provide an additional four affordable properties within the District.
Decisions:
(1) That the improvement and conversion of Leader Lodge, North Weald into four self contained flats, together with the development of an annexe comprising at least two self contained flats within the grounds of Leader Lodge in partnership with one of the Council’s Preferred Registered Social Landlord (RSL) Partners be sought;
(2) That the new and converted flats be sold on a shared-ownership basis, as a low cost home ownership initiative for first time buyers in the District who are unable purchase a property on the open market;
(3) That, in order to ensure maximum value for money, one of the Council’s Preferred RSL Partners be selected by the Housing Portfolio Holder to undertake the development following a competitive process based upon:
(a) the plans formulated by the Council’s architect:
(b) the proposed amounts to be paid to the Council by the RSLs; and
(c) any other material considerations considered appropriate by the Housing Portfolio Holder;
(4) That the selected Preferred RSL Partner be required to;
(a) produce and submit the detailed planning application at its own cost and risk; and
(b) submit a bid to the Housing Corporation for Social Housing Grant (SHG) funding, which the Council would support;
(5) That, subject to the receipt of planning permission and the RSL undertaking the approved development, the freehold of Leader Lodge and the associated land be sold to the selected Preferred RSL Partner, after the outcome of the Housing Corporation Bidding Round is known, for its tendered sum; and
(6) That any capital receipt be utilised to provide local authority social housing grant to an RSL to facilitate the provision of affordable housing on another site, and that the Housing Portfolio Holder be authorised to approve its most appropriate use, in terms of the site and RSL.
Reasons for Decision:
Consideration had been given to the three main options for the future of Leader Lodge, and the recommended action provided the most affordable housing, whilst providing a low cost home ownership opportunity for first time buyers in the District, and a small capital receipt which may be used to provide social housing grant to create affordable housing on another site.
Other Options Considered and Rejected:
To have continued to provide 2 two bedroomed rented flats occupied by secure tenants allocated in accordance with the Housing Allocations Scheme. However, in view of the desperate shortage of affordable housing within the District, the extensive grounds were not being used to their full potential.
To sell the site on the open market, realising a capital receipt for the Council, which could have been used to help fund the provision of affordable housing elsewhere in the District.
Supporting documents: