Agenda item

Decision

That Cabinet approve the following grant funding payments for affordable housing developments in the Borough:

1. £3,270,169 to Hightown Housing Associationfor a development known as Viking House, Swallowdale Lane, Hemel Hempstead. 

2. £2,264,854 to Hightown Housing Associationfor a development known as 66 Books, Wood Lane End, Hemel Hempstead.

 3. £1,335,000 to Thrive Homes for 5 No Garage Sites in Hemel Hempstead known as Futherground, Great Heart, Leys Road, Micklefield Road and Middleknights.

4. £720,000 to Thrive Homesfor a development known as Spencer’s Park, Hemel Hempstead.

5. £2,950,000 to Thrive Homesfor a development known as Hempstead House, Hemel Hempstead.

6. In addition, this recommendation authorises a +/- 5% adjustment to the stated cost figures as a contingency sum should the Housing Association revise their cost data as these are based on current estimates which could adjust as the project develops.

7. That Cabinet recommends to Councilsupplementary Capital budgets funded by “one for one” receipts for the Affordable Housing Development fund as follows:

2017/18           £3,375,000

2018/19           £4,870,000

2019/20           £1,629,000

2020/21           £625,000

2021/22           £42,000

Reason for decision

To seek approval for the payment of “one for one” grant funding to Housing Associations (Registered Providers) delivering affordable housing schemes in the Borough.

Corporate objectives

Delivering Affordable Housing.

Monitoring Officer/S.151 Officer comments

Deputy Monitoring Officer:  

Under the scheme introduced in 2012 investment in new affordable housing can be made by the Council itself or through grant funding registered providers. 

This decision proposes the funding of several developments by Hightown Housing Association and Thrive Homes.

Officers should ensure that each grant going forward is covered by the grant agreement (referred to in para 7 below) to ensure that the Council’s position is protected and enable it to meet audit requirements.

Deputy S.151 Officer:

These grant payments can be met from 1-4-1 receipts. 

Advice

M Gaynor and E Brooks provided some background information on the item.

Councillor Williams felt that the 3 year window wasn’t very long. E Brooks advised that the 3 years was for us to spend the money. He said the risk would be passed on to the Housing Association if they didn’t spend the money in time.

M Gaynor said they could give the money back to the Government if it wasn’t being spent.

Councillor Birnie asked how much money had been given back so far. E Brooks advised none.

Councillor Birnie asked if one scheme failed, could they give the money to another. E Brooks advised they could, however that wasn’t high on the agenda.

D Barrett said there were a number of agreements currently running, with a possibility of one not being delivered on time. He said it would be down to the Housing Association to pay the fines if there’s a delay on the scheme. M Gaynor said the agreement in place protects the council.

Councillor Douris asked if there were robust monitoring arrangements in place. E Brooks advised they had a spreadsheet set up to monitor when RSL’s sign up and complete forms, and also updates on the schemes. M Gaynor said finance arrangements were in place to monitor spend and commitments.

Voting

None.