Agenda item

O&S.116/17   

Members considered a report that presented a range of options for the purpose of delivering social/affordable housing in order to meet the needs of those in the South Hams who were finding it difficult to purchase their own property and/or find suitable rented accommodation.

The Chairman proceeded to introduce the Principal Consultant from an organisation called Altair, who delivered a presentation to those in attendance.  Upon the conclusion of the presentation, it was agreed that the presentation would be circulated to all Members for their information and reference.

In the ensuing discussion, reference was made to:-

(a)   inclusion of social rented housing.  When questioned, the Principal Consultant expressed the view that, for the purposes of this project, inclusion of social rented housing would not be a sustainable option.  In light of this comment, some Members felt that the heading of the agenda item (i.e. Enabling Homes to ‘Meet the Needs for All’) was somewhat misleading and should be revisited as the project progressed;

(b)   governance supporting the establishment of a Board / Executive arrangement.  Whilst acknowledging the likely appetite of the Council to maintain close control of any vehicle that underpinned the governance arrangements, the Principal Consultant also highlighted the need for any Board / Executive to have representatives that were appointed on a ‘fit for purpose’ basis;

(c)    an amendment to the report recommendation.  In PROPOSING a series of amendments to the recommendation, a Member was of the view that the principles (as outlined in Section 4 of the presented agenda report) gave too much emphasis on a Wholly Owned Company (WOC) being a solely commercial entity rather than a commercial and social entity.  Furthermore, it was the view of the proposer that any profits generated by a WOC should be reinvested for further development.   These amendments were each SECONDED as follows:

i.       That section 4.1.1 be amended to read:

‘The delivery of affordable housing by the Wholly Owned Company (WOC) should be financially viable and not dependent on funding from the Council to cover any possible financial losses.’

When put to the vote, this amendment was declared CARRIED.

ii.    That section 4.1.8 be amended whereby reference throughout to the term ‘will’ be replaced with the term ‘may’.

A number of Members did not support this amendment and, when put to the vote, it was declared LOST.

iii.     That section 4.1.8 include an additional (final) sentence that read:

‘In any event, the focus of the WOC is to provide affordable housing for sale or rent at below market rates.’

When put to the vote, this amendment was declared CARRIED.

iv.    That section 4.1.9 be deleted.

Whilst the proposer felt that this section did not add anything to the principles, the majority of Members disagreed and, when put to the vote, this amendment was declared LOST.

v.      That section 4.1.9 be amended to read:

‘Affordable Housing rents will be set in order to meet the objectives in the Business Case.  This does not mean that social rents will be made available.’

When put to the vote, this amendment was declared CARRIED.

vi.    That sections 4.10 and 4.11 be deleted.

When put to the vote, this amendment was declared CARRIED.

vii.     An additional recommendation 4 to read:

‘That, before a business case is presented to the Panel and the Executive, arrangements be made for the relevant officers to meet with Members on a ward by ward basis so as to investigate and ascertain possible opportunities that may be available (or become available) to the WOC in their area for the development of affordable housing.  During these meetings, particular attention is to be given to possible ‘exception’ sites in planning terms.  The outcome of these meetings will then be presented to the Panel and the Executive alongside the business case proposal.’

When put to the vote, this addition was declared CARRIED.

In concluding the agenda item, the Chairman thanked the Principal Consultant for his informative presentation and, on behalf of the wider membership, looked forward to developing the working relationship with his organisation as the project evolved.

RESOLVED

1.     That the good work carried out already to support the Council’s strategic aim of enabling homes to meet the needs for all (as outlined in Section 3 of the presented agenda report) be acknowledged;

2.     That the principles (as outlined in Section 4 of the presented agenda report) be agreed and supported subject to:-

(a)       Section 4.1.1 being amended to read:

‘The delivery of affordable housing by the Wholly Owned Company (WOC) should be financially viable and not dependent on funding from the Council to cover any possible financial losses.’

(b)   Section 4.1.8 being amended to include a final sentence that reads:

‘In any event, the focus of the WOC is to provide affordable housing for sale or rent at below market rates.’

(c)    Section 4.1.9 be amended to read:

‘Affordable Housing rents will be set in order to meet the objectives in the Business Case.  This does not mean that social rents will be made available.’

(d)   Sections 4.1.10 and 4.1.11 being deleted.

3.     That the Panel consider (before its presentation to the Executive) a detailed business case for the formation of a South Hams District Council WOC that will increase the Council’s capability to enable homes to meet the needs for all; and

4.     That, before a business case is presented to the Panel and the Executive, arrangements be made for the relevant officers to meet with Members on a ward by ward basis so as to investigate and ascertain possible opportunities that may be available (or become available) to the WOC in their area for the development of affordable housing.  During these meetings, particular attention is to be given to possible ‘exception’ sites in planning terms.  The outcome of these meetings will then be presented to the Panel and the Executive alongside the business case proposal.