Agenda item

1.    That the bid to be made to the Ministry of Housing, Communities and Local Government (MHCLG) be approved, as set out in the report, including the financial details in part 2, for additional borrowing freedom for £10.1M in the Housing Revenue Account to facilitate the early delivery of 106 new homes and to approve the acceptance of the bid if successful.

2.    That the bid be accepted, if successful, and the detail, process and utilisation of any increased borrowing arising from the bid be delegated to the Corporate Director Housing and Regeneration and the Corporate Director Finance and Operations including any minor variations that may need to be made following liaison with MHCLG.

3.    That the purchase of land at Paradise Fields for Homes England on the terms set out in the Part 2 report be approved and the process of purchase be delegated to the Corporate Director Finance and Operations. £150,000 to be allocated for consultancy and design work, from the existing 2018/19 HRA new build budget also be approved.

4.    That the revised contract, as set out in Part 2 of this report, for the construction of new homes at Stationers Place, be awarded to Jarvis UK Ltd.

5.    That delegated authority be given to the Corporate Director Housing and Regeneration in consultation with the Corporate Director Finance and Operations and the Assistant Director, Corporate and Contracted Services and  the Portfolio Holder Housing and Portfolio Holder Finance and Resources to purchase land of a value up to £5,000,000 for housing development.

6.    That the Housing Revenue Account land purchase Framework set out in the report be approved.

7.    That the new build update be noted.

Decision

1.    That the bid to be made to the Ministry of Housing, Communities and Local Government (MHCLG) be approved, as set out in the report, including the financial details in part 2, for additional borrowing freedom for £10.1M in the Housing Revenue Account to facilitate the early delivery of 106 new homes and to approve the acceptance of the bid if successful.

2.    That the bid be accepted, if successful, and the detail, process and utilisation of any increased borrowing arising from the bid be delegated to the Corporate Director Housing and Regeneration and the Corporate Director Finance and Operations including any minor variations that may need to be made following liaison with MHCLG.

3.    That the purchase of land at Paradise Fields for Homes England on the terms set out in the Part 2 report be approved and the process of purchase be delegated to the Corporate Director Finance and Operations. £150,000 to be allocated for consultancy and design work, from the existing 2018/19 HRA new build budget also be approved.

4.    That the revised contract, as set out in Part 2 of this report, for the construction of new homes at Stationers Place, be awarded to Jarvis UK Ltd.

5.    That delegated authority be given to the Corporate Director Housing and Regeneration in consultation with the Corporate Director Finance and Operations and the Assistant Director, Corporate and Contracted Services and  the Portfolio Holder Housing and Portfolio Holder Finance and Resources to purchase land of a value up to £5,000,000 for housing development.

6.    That the Housing Revenue Account land purchase Framework set out in the report be approved.

7.    That the new build update be noted.

Corporate objectives

Monitoring Officer:  

Any land purchases under the proposed delegation in recommendation 5 will need to be documented in an officer decision sheet to ensure that the decision is properly recorded.

Full site due diligence and valuation assessment should also be carried and reported in the officer decision sheet for consideration by the statutory officers.

Deputy S.151 Officer

The revised new build development programme and subsequent submission for an increase in the HRA borrowing limit, by £10.1m, has been modelled through the 30 year business plan. The business case put forward is financially sustainable but will require close monitoring.

The HRA is projected, if the bid is accepted, to maximise its new extended borrowing cap of £364min 2021/22 and 2022/23, hence fiscal management is key, as borrowing to the maximum capacity provides no headroom. The strategy will need to continue to be closely monitored to ensure the new build development plan remains deliverable and affordable.

The financial increase in the tender contract for Stationers place can be delivered within the existing new build development budget. The increase in contract value after analysis is in line with the expected industry inflationary increases over this time period.

The implementation of a land purchase framework/delegated decision making process will allow for the HRA to react to market conditions in a timely manner. The approval of land purchases must be accompanied with a red book valuation to ensure value for money is assessed.

Advice

Councillor Griffiths introduced the item and said this report was to update members on the new build programme and to show the new process for acquiring sites. There is an option to apply for an increase in the council’s borrowing cap and the council applied for this two weeks ago.

M Gaynor said there was an error under paragraph 6.6 which should say units not nits. He said this was a significant report and deals with the bid for additional borrowing. This year, the council have built 132 units with another 280 in construction. If the bid is successful, this will provide funding to build another 231. There are strict rules associated with the bid; the council must use all of its borrowing requirements and must deliver within the planned timeframe. The funding is also limited to the projects planned, the submitted bid asks for an extra £10 million which is based on the projects that the council have already planned. Dacorum has a good track record on delivering homes and this could allow for a second bid in the future.

Councillor Marshall referred to page 41 and asked how the process would be reported to members.

M Gaynor said initially, there would be consultation with the portfolio holder and reports to Cabinet. He said there would also be an officer decision sheet.

Councillor Marshall asked at what point would these be produced?

M Brookes said the purchase of sites would be included under the officer decision sheet.

M Gaynor said that the site would be sold in competition so the successful agent would be looking for a quick process which the Cabinet process does not allow for.

Councillor Marshall asked if the officer decision would be subject to call in?

M Brookes said yes. There would be a process to sign off the agreement and then a separate legal process.

Councillor Marshall asked how long the call in was for an officer decision. She said she wanted to make sure there was enough time.

M Brookes said the call in was five days. He said the council will not be signing the transfer that soon after the decision is published.

Voting

None.