Agenda item

(Housing Portfolio Holder) To consider the attached report (C-067-2010/11).

(1)        That the land to the rear and side of Roundhills Shops in Waltham Abbey (shown delineated in black on the attached Appendix to the report) - comprising the land previously leased to the Red Cross for the provision of a hall, seven Council-owned garages and associated vacant land – be developed by the Council for the provision of affordable rented housing, in partnership with one of the Council’s Preferred Housing Association Partners;

(2)        That the Housing Portfolio Holder be authorised to select one of the Council’s Preferred Housing Association Partners to undertake the development following a tender process, based on the indicative provision of 4 X 3 bedroomed houses and 3 x 1 bedroomed flats at affordable rents and:

(a)        the proposed amounts to be paid to the Council by the housing associations; and

(b)        any other material considerations considered appropriate by the Housing Portfolio Holder;

(3)        That the selected Preferred Housing Association Partner be required to:

(a)        evaluate the indicative proposal and assess whether or not more affordable properties could be provided on the site, subject to the capital receipt received by the Council being no lower than the selected Housing Association’s tendered sum; and

(b)        submit a detailed planning application for the proposed scheme at its own cost and risk;

(4)        That, subject to the receipt of planning permission and the selected housing association undertaking the approved development, the selected housing association be granted a 125 year lease for the land for the agreed sum, with the Council receiving nomination rights in accordance with the District-wide Nominations Agreement;

(5)        That any capital receipt arising from the transfer be retained as a usable capital receipt for use in the future, and not be ring-fenced to facilitate the provision of affordable housing on another site; and

(6)        That if the selected tender results in a negative valuation, with grant required to make the proposed development viable:

(a)        the selected housing association be required to seek grant funding from the Homes and Communities Agency (HCA); and

(b)        if the HCA does not provide grant funding, a report be submitted to a future meeting of the Cabinet to agree the way forward, including the possible provision of grant by the Council.

The Housing Portfolio Holder presented a report concerning a potential affordable housing development on land to the rear and side of the Roundhills shops in Waltham Abbey.

The Portfolio Holder reported that the British Red Cross had surrendered its lease with the Council for land at Roundhills, Waltham Abbey and demolished the hall which it had previously constructed on the land. This had opened up the possibility of the site and adjacent land comprising a garage area and some vacant land being developed for affordable housing, and it was proposed that tenders be invited from the Council’s Preferred Housing Association Partners for the provision of four three-bedroomed houses and three one-bedroomed flats at affordable rents. Following the development of the site, the selected Housing Association would be granted a 125-year lease for the land, with the Council receiving nomination rights in accordance with the District-wide Nominations Agreement. Any capital receipt arising from the transfer would be retained as a usable capital receipt in the future and not ring-fenced for the provision of affordable housing on another site.

The Portfolio Holder added that if the selected tender resulted in a negative valuation then the Housing Association would be required to seek grant funding from the Homes & Communities Agency in the first instance. If no funding was forthcoming from the Agency then a further report would be submitted to the Cabinet.

Decision:

(1)        That the land to the rear and side of Roundhills Shops in Waltham Abbey (shown delineated in black on the Appendix attached to the report) - comprising the land previously leased to the Red Cross for the provision of a hall, seven Council-owned garages and associated vacant land – be developed by the Council for the provision of affordable rented housing, in partnership with one of the Council’s Preferred Housing Association Partners;

(2)        That the Housing Portfolio Holder be authorised to select one of the Council’s Preferred Housing Association Partners to undertake the development following a tender process, based on the indicative provision of 4 X 3-bedroomed houses and 3 x 1-bedroomed flats at affordable rents and:

(a)        the proposed amounts to be paid to the Council by the housing associations; and

(b)        any other material considerations considered appropriate by the Housing Portfolio Holder;

(3)        That the selected Preferred Housing Association Partner be required to:

(a)        evaluate the indicative proposal and assess whether or not more affordable properties could be provided on the site, subject to the capital receipt received by the Council being no lower than the selected Housing Association’s tendered sum; and

(b)        submit a detailed planning application for the proposed scheme at its own cost and risk;

(4)        That, subject to the receipt of planning permission and the selected Housing Association undertaking the approved development, the selected Housing Association be granted a 125 year lease for the land for the agreed sum, with the Council receiving nomination rights in accordance with the District-wide Nominations Agreement;

(5)        That any capital receipt arising from the transfer be retained as a usable capital receipt for use in the future, and not be ring-fenced to facilitate the provision of affordable housing on another site; and

(6)        That if the selected tender results in a negative valuation, with grant required to make the proposed development viable:

(a)        the selected housing association be required to seek grant funding from the Homes and Communities Agency (HCA); and

(b)        if the HCA does not provide grant funding, a further report be submitted to a future meeting of the Cabinet to agree the way forward, including the possible provision of grant by the Council.

Reasons for Decision:

There was a discernible shortage of affordable rented housing in the District and the proposal would result in the provision of additional affordable housing.

Other Options Considered and Rejected:

·                     To not to develop the land, to develop the land for another Council use, or to sell the land on the open market.

·                     To select a preferred Housing Association partner without going through a competitive process.

·                     To seek a different mix of properties on the site, or a different tenure mix.

·                     To lease the land for a different period, or to sell the freehold.

·                     To utilise any capital receipt for the provision of affordable housing on another site or to provide additional funding for the Open Market Shared Ownership Scheme.