Agenda item

(The Director of Communities) To consider the attached report (CHB-017-2013/14).

(1)     That East Thames, in consultation with the Director of Communities, be authorised to submit a bid to the Homes and Communities Agency (HCA) for Affordable Housing Grant as part of the Affordable Homes Programme 2015-18, before the 30 April 2014 deadline, initially to fund 40 homes at Burton Road, Loughton, based on a grant of £12,500 per home and based on affordable rent in line with the Council’s Affordable Rent Policy, with the remaining 16 homes, plus the 23 homes included in Phase 1, being put forward with nil grant;

(2)     That, as part of the bid for HCA Affordable Housing Grant, the Council reaffirms its intention to charge affordable rent on all new homes, but to retain social housing rent for existing housing stock and not convert vacant properties to affordable rent on re-let;

(3)     That, subject to a successful grant application, East Thames be authorised to prepare an application on behalf of the Council for HCA Investment Partner Status so that the funding can be drawn at the appropriate time; and

(4)     That it be noted, due to the amount of time between the meeting and the 30 April deadline to submit a bid to the HCA for Affordable Housing Grant, the Chairman of Council has agreed to waive the call-in procedure for this item.

(NB. This decision is not subject to call-in due to the time constriction in submitting the bid by noon on the 30 April 2014.)

The Assistant Director (Housing Property and Development) presented a report to the Cabinet Committee. He advised that following the launch of the 2015-18 Affordable Homes Programme Bid Prospectus by the Homes and Communities Agency (HCA), the Council now had the opportunity to bid for an Affordable Housing Grant to subsidise the Council’s Housebuilding Programme. The Prospectus signals the start of the Bid Round, which would close at 12 noon on 30 April 2014. The Prospectus prescribes that any bids must be made based on an executive decision.

Further documentation would need to be prepared in relation to the design and training standards that the HCA expects. These standards had not been published by the HCA yet but East Thames was monitoring this situation and would work with the Council to deliver these statements on time.

Once the bid was submitted, the HCA expected to confirm successful bids by Mid July 2014. It was recommended that, should the Council’s bid be successful, then East Thames be authorised to lead on the process of gaining investment partnership status with the HCA.

The advantage to bidding for grant from the HCA was that, if successful, more affordable homes could be provided within the Housebuilding Programme than otherwise would be the case.

Due to the limited amount of time between the meeting and the 30 April deadline to submit a bid to the HCA for Affordable Housing Grant, the Chairman of Council had agreed to waive the Call-in Procedure for this item.

Decisions:

(1)     That East Thames, in consultation with the Director of Communities, be authorised to submit a bid to the Homes and Communities Agency (HCA) for Affordable Housing Grant as part of the Affordable Homes Programme 2015-18, before the 30 April 2014 deadline, initially to fund 40 homes at Burton Road, Loughton, based on a grant of £12,500 per home and the provision of affordable rents in line with the Council’s Affordable Rent Policy, with the remaining 16 homes, plus the 23 homes included in Phase 1, being put forward as part of the bid with a nil grant requirement;

(2)     That, as part of the bid for HCA Affordable Housing Grant, the Council reaffirms its intention to charge affordable rents for all new homes, but to retain social housing rent for existing housing stock and not convert vacant properties to affordable rent on re-let;

(3)     That, subject to a successful grant application, East Thames be authorised to prepare an application on behalf of the Council for HCA Investment Partner Status so that the funding can be drawn down at the appropriate time; and

(4)     That it be noted, due to the amount of time between the meeting and the 30 April deadline to submit a bid to the HCA for Affordable Housing Grant, the Chairman of Council had agreed to waive the Call-in Procedure for this item.

Reasons for the Decision:

In order for the HCA to consider any bids for Affordable Housing Grant, it requires the bid to be supported by an executive decision of the Board or other authorised Committee.

Other Options Considered and Rejected:

Not to submit an application for grant and to self-fund the programme.