Issue - meetings

Cabinet agreed to award an additional one for one receipt grant funding payment of £1,035,146 to Hightown for the development known as 66 Books, Wood Lane End for affordable housing development in the borough. This will result in a total grant funding level of £3,300,000 for this scheme.

Decision

Cabinet agreed to award an additional one for one receipt grant funding payment of £1,035,146 to Hightown for the development known as 66 Books, Wood Lane End for affordable housing development in the borough. This will result in a total grant funding level of £3,300,000 for this scheme.

Corporate Priorities

A clean, safe and enjoyable environment

Building strong and vibrant communities

Ensuring economic growth and prosperity

Providing good quality affordable homes, in particular for those most in need

Ensuring efficient, effective and modern service delivery

Climate and ecological emergency

Statutory Officer Comments:

Monitoring Officer:

The terms of the funding will need to be set out in a funding agreement between the parties to document all the agreed terms and to ensure that the funding is utilised to provide housing at the affordable rent levels agreed.

S151 Officer:

The provision of the additional funding will take the total grant funding for this scheme to £3.3m, circa £100k per affordable new home. This funding will guarantee the 33 affordable homes are developed and maintained at a rent level of 65% of the open market value. This additional grant payment for 66 Books will mean the current projected 141 housing receipts will be fully utilised by 2025, hence the need for the HRA to look to non 141 receipts as a source of financing for its capital programme from 2025. This could, as a last resort, include borrowing.

Advice

Cllr Griffiths introduced the report commenting she would be grateful if we can grant this money so we can get the 33 homes at 65% affordable rent rather than the 80% market rent that Hightown would ordinarily charge.

Cllr Elliott referred to the 65% and asked; is there assurance that they cannot increase that percentage at a later date?

Cllr Griffiths advised rents will go up but will always be maintained at the 65% rate.

DBarrett advised there will be a legal agreement that states the 65%.

RECOMMENDATIONS AGREED