Issue - items at meetings - Off Plan Procurement - Residential Acquisitions

Report of the Executive Director for Environment, Development and Housing (copy attached).

1.            That the Executive Director Environment, Development & Housing, in consultation with Executive Director of Finance & Resources, pursue negotiations with potential funding and development partners in order to work up fundable off plan residential acquisitions propositions and that these be brought back to Policy & Resources Committee for consideration;

2.            That officers continue discussion with Department of Communities & Local Government in making recommendations to HM Treasury for the Autumn Statement arising from discussions on housing supply & homelessness work;

3.            That officers consider funding options including General Fund prudential borrowing, Housing Revenue Account capital financing and ‘off public sector balance sheet’ institutional and private investment financing along with appropriate delivery, management and governance frameworks, subject to further reporting back to Housing Committee and Policy & Resources Committee.

57.1    The Committee considered a report of the Executive Director for Environment, Development & Housing in relation to Improving Housing Supply – Off Plan Procurement – Residential Acquisitions. The report sought approval for delegation authority to the relevant Executive Directors to explore and negotiate options to enable the Council to intervene in the market to deliver new housing to meet the identified housing needs. Detailed proposes on any specific capital schemes relating to the acquisition of residential on major development sites in the city would form separate reports to the Housing and Policy & Resources Committees.

57.2    Councillor Bowden noted his support for the report, and hoped this would be a mechanism to achieve more affordable housing. The proposals would give developers options and ease cash flows issues as well as making developments look more viable and creating the new homes the city needed. The Chair noted that the report embodied the role the local authority should be playing.

57.3    Councillor Hamilton noted that from his role on the Planning Committee he and other Members were often disappointed with the amount of affordable housing that came forward on large schemes. He stated that any measures to help those on the waiting list for social housing would be very welcome.

57.4    In response to Councillor Peltzer Dunn the Executive Director for Environment, Development & Housing explained that it was the intention of Seaside Community Homes to develop more housing, but the challenge would be around the funding of this. There was approximately £25M in the HRA funding that could be used, but this had to be considered in the context of the cost of housing in the city. Work was being undertaken with the Department for Communities & Local Government to see how this could be supported by Central Government. The Executive Director for Finance & Resources explained that more information could be bought back to a future meeting once some initial consultation had taken place with the market.

57.5RESOLVED:

1)        That the Executive Director Environment, Development & Housing, in consultation with Executive Director of Finance & Resources, pursue negotiations with potential funding and development partners in order to work up fundable off plan residential acquisitions propositions and that these be brought back to Policy & Resources Committee for consideration;

2)        That officers continue discussion with Department of Communities & Local Government in making recommendations to HM Treasury for the Autumn Statement arising from discussions on housing supply & homelessness work;

3)        That officers consider funding options including General Fund prudential borrowing, Housing Revenue Account capital financing and ‘off public sector balance sheet’ institutional and private investment financing along with appropriate delivery, management and governance frameworks, subject to further reporting back to Housing Committee and Policy & Resources Committee.