I.        Note the impact of the Chancellor’s summer budget  to the HRA; and

    II.        Agree an appropriate strategy for the use of the Council’s RTB Receipts.

DECISION

1.     To authorise the Corporate Director, Development & Renewal

a.     to return the GLA grant element as it applies to the development schemes at Ashington East, Hereford and Locksley

b.     to give up the additional borrowing awarded under the Local Growth Fund in respect of sites at Baroness Road and Jubilee Street.

2.     To agree the removal of the small sites at Brick Lane, Spelman Street, Christian Street, and Mile End Road from the programme on the basis that they do not represent an effective use of Council resources.

3.     To approve the adoption of a capital estimate of £10 million in pursuit of a revised development programme to be funded from Right To Buy receipts,  in order to enable the appointment of professional services, including technical advisors, architects, employer's agents, surveys, and allow the schemes detailed in the table at paragraph 3.11.3. to be developed up to RIBA stage 3.

4.     To adopt a capital estimate of £27.3 million for the purchase of up to a maximum of 85 former social housing leasehold and/or freehold stock in the borough, subject to these satisfying conditions of affordability and good quality management.

5.     To agree a capital estimate of £7.06 million be allocated for the creation of a Local Affordable Housing Grant scheme subject to the Commissioners’ decision as required by the 2014 Directions.

6.     To authorise the Director, Development & Renewal, to procure services and works and to let contracts in the delivery of the new homes in as far as required to fulfil recommendation 3 above.

7.     To authorise the Director, Development & Renewal, to purchase social housing leasehold or freehold stock in the borough as per paragraph 4 above, including properties with a purchase  value exceeding £250k and to procure services and works to bring the properties up to the required standards for letting to social tenants.

8.      To note that an enhanced development programme with an indicative value of £115 million for the delivery of circa 400 new homes is being assessed for inclusion within the capital programme. This will incorporate a review of the developments included in recommendation 1.

9.      To note that should schemes not proceed following development to RIBA stage 3, these costs will be abortive and therefore must be charged to revenue. If so, the costs will be financed from revenue resources earmarked to finance a Revenue Contribution to Capital expenditure.

10.   To note that the proposed programme is currently over-programmed to allow for medium term planning, however the schemes will not progress beyond RIBA Stage 3 unless the total funding on a scheme by scheme basis is in place.

11.   To note that a Resident Communication and Engagement Strategy will be developed and implemented for the delivery of the Capital Development Programme.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Strategy, Regeneration, Sustainability and Housing Options (J. Odunoye)

(Service Head, Resources and Economic Development)

(Strategic Housing Manager (J. Coker)