Agenda item

Planning and Sustainability – (C-027-2021-22) - to be agreed by the Garden Town local authority partners in an enabling Memorandum of Understanding (MoU).

(1)        The Cabinet agreed the Memorandum of Understanding relating to The Harlow & Gilston Garden Town Rolling Infrastructure Fund and agreed to its submission to Homes England as required of the Harlow and Gilston Garden Town Authority partners and specifically Hertfordshire County Council (as accountable body for the Housing Investment Grant funding to which the Memorandum of Understanding relates);

(2)        The Cabinet agreed to set up and operate the Rolling Infrastructure Fund ‘in principle’ subject to more detailed work and approval of the appropriate governance and operational arrangements for its management; and

(3)        The Cabinet agreed to govern the Rolling Infrastructure Fund initially in accordance with the approved Memorandum of Understanding as required by Homes England as a condition of the Housing Investment Grant funding and subsequently in accordance with any further governance arrangements that may be affected.

The Planning and Sustainability Portfolio Holder, Councillor N Bedford, introduced the report on the Memorandum of Understanding.

The Rolling Infrastructure Fund (RIF) was a key component of the Hertfordshire County Council bid for Housing Investment Fund monies to upgrade the Central Stort Crossing and build the Eastern Stort Crossing (“the Crossings”). £171 million of Housing Investment Grant (HIG) was awarded by Homes England in March 2021 and the RIF was integral to the future funding mechanism for infrastructure delivery within the Harlow and Gilston Garden Town. It forms part of the Recovery and Recycling Strategy which permits the funding to be recycled as part of the developer contributions to mitigate the impacts of development, which can be used for future infrastructure funding and related items.

For the RIF to be set up and managed effectively, the objectives, guiding principles and governance arrangements need to be agreed by the Garden Town local authority partners in an enabling Memorandum of Understanding (MoU) in the first instance.

The RIF MoU was now in the process of being circulated to all five local authority partners for them to ratify it individually through their respective Cabinet/ Executive. The MoU would be submitted, together with the HIG Recovery & Recycling Strategy, to Homes England to satisfy Conditions of the HIG funding.

The RIF itself, once created and operational, would be a key mechanism for future funding of infrastructure to enable the realisation of the HGGT Vison and the achievement of the modal shift targets.

Councillor Philip supported this report but expressed concern over the resource implications and the potential contributions that may be required from Epping Forest District Council, which were currently unknown. As finances were tight at the moment there would be no additional funding for this. N Polaine (HGGT Director) commented that resourcing was already in place through baseline funding and was already in the budget. And, there would be additional money from HGGT partners that will be confirmed in the New Year 2022 which would give a projected million pounds revenue. The future prize would be in the region of £171 million Capital and potentially additional funding coming in from other contributions to this pot.

Decision:

(1)        The Cabinet agreed the Memorandum of Understanding relating to The Harlow & Gilston Garden Town Rolling Infrastructure Fund and agreed to its submission to Homes England as required of the Harlow and Gilston Garden Town Authority partners and specifically Hertfordshire County Council (as accountable body for the Housing Investment Grant funding to which the Memorandum of Understanding relates);

(2)        The Cabinet agreed to set up and operate the Rolling Infrastructure Fund ‘in principle’ subject to more detailed work and approval of the appropriate governance and operational arrangements for its management; and

(3)        The Cabinet agreed to govern the Rolling Infrastructure Fund initially in accordance with the approved Memorandum of Understanding as required by Homes England as a condition of the Housing Investment Grant funding and subsequently in accordance with any further governance arrangements that may be affected.

Reasons for Proposed Decision:

To ensure that the Harlow and Gilston Garden Town Authority partners and specifically Hertfordshire County Council (as accountable body for the Housing Investment Grant funding) meets requirements within the Grant Determination Agreement with Homes England for the award of the Housing Investment Grant, specifically that of the recycling of the Housing Investment Grant into a Rolling Infrastructure Fund.

To establish a mechanism through which the Harlow and Gilston Garden Town Authority partners will initially agree how to operate the Rolling Infrastructure Fund pending future governance arrangements.

Other Options for Action:

Not to agree the Memorandum of Understanding relating to the Rolling Infrastructure Fund or agree to set up and operate the RIF in principle and governed in accordance with the MoU, which would mean that a condition of the Housing Investment Grant funding, as required by Homes England, would not be met.