Agenda item

55/21

Consideration was given to a report that provided Members with an update and made recommendations with regard to the St Anns Chapel Community Housing Project.

In discussion, the following points were raised:-

(a)      The close linkages between the project and the Council’s recently declared Housing Crisis were recognised;

(b)      The energy efficiency proposals associated with the project were felt to be commendable;

(c)       With regard to some specific questions and concerns relating to the contractual arrangements, it was agreed that these would be discussed with a Member outside of this Council meeting;

(d)      The local Ward Member expressed his support for the project and emphasised the identified local housing need and the suitability and sustainability of the proposed site;

(e)      As a general point, a Member highlighted the need, as part of the Housing Crisis, for a localised definition of the term ‘affordable housing’ to be established.

It was then:

RESOLVED

1.         That approval be given to the construction of the project to deliver 8 Affordable Homes, 3 Open Market Units and 2 serviced plots at St Anns Chapel Affordable Housing Scheme (“the Project”);

2.         That the total project cost of £4.2 million be funded as follows:

a.         Long-term funding of up to £2.2 million from a combination of internal and external borrowing (from the Public Works Loan Board);

b.         Funding of up to £250,000 from the Affordable Housing Earmarked Reserve (in addition to the £100,000 approved previously);

c.          £1.4 million from the disposal of the 3 Open Market Units;

d.         A Homes England grant of not less than £110,000; and

e.         £162,000 from Section 106 contributions (as previously approved);

3.         That approval be given to the short-term borrowing costs of approximately £3.6 million over a two-year period (before the three Open Market Units are disposed of for £1.4 million);

4.         That authority be delegated to the Section 151 Officer (in accordance with normal treasury management activities) for the borrowing strategy (for both the internal and external borrowing);

5.         That authority be delegated to the Head of Assets to dispose of the 2 Serviced Plots as consideration for the land purchase and the 3 Open Market Units;

6.         That authority be delegated to the Head of Assets to make an application to Homes England for grant funding of at least £110,000 to support the delivery of the Project;

7.         That authority be delegated to the Head of Assets, in consultation with the Head of Housing, to increase the number of Affordable Rental Units up to 8 within the proposed Affordable Housing Scheme;

8.         That authority be delegated to the Head of Assets to make the contract awards necessary for the delivery of the Project; and

9.         That it be noted that, upon completion of the affordable homes, it is intended to transfer them on long-leases to the Community Benefit Society being formed by the Council, subject to the Director of Place and Enterprise, in consultation with the Section 151 Officer, undertaking due diligence to identify the associated legal, financial and accounting implications of doing so.