To:

·         Consider the updated HRA position over the medium and long-term; and

·         Agree the incorporation of various HRA new development schemes for inclusion in the capital programme.

DECISION

1.    To note the updated HRA financial outlook and 30 year business plan base case as set out in section 5, and note the resulting medium-term projections detailed in Appendix 1, including the assumptions regarding new-build and the capital requirements relating to maintaining the existing stock.

2.    To note that, as outlined in section 6 of the report, and detailed in Appendix 2 to the report, although the Housing and Planning Act has been enacted, the financial impact on the HRA of the High Value Void levy and Pay to Stay is not known, although some assumptions have been made for modelling purposes.  A further review of the business plan will be brought back to Cabinet for consideration when full details have been published

3.    To agree the HRA medium-term financial plan net savings target of £1 million per annum over the period of the medium-term plan period, in addition to the £2 million of savings already assumed in 2017/18.

4. To note the financial impact on the HRA of developing new housing and letting at social rent, as outlined in paragraphs 9.18 to 9.22, and agree the appropriate mix of social and ‘Living’ rents as set out at 9.34 to the report.

5. To agree a disposal programme of up to five HRA properties per year as an initial response to the requirement to sell vacant higher value Council stock, as set out in paragraphs 9.30 to 9.33 to the report.

6. To agree to incorporate a capital budget of £89.92m (inclusive of fees, on costs and a level of contingencies) into the capital programme for the new build construction at the Hereford, Locksley, Baroness, Jubilee, Tent Street and Arnold Road sites to deliver 270 new homes as set out in section 9. This replaces the total budgets of £48.157m that were previously agreed for Hereford, Locksley, Baroness and Jubilee and for preliminary works at Tent Street and Arnold Road.

7. To agree that approval to proceed to award contracts be delegated to the Corporate Director, Development & Renewal and the Corporate Director, Law Probity & Governance, subject to the tenders being within the capital estimate amount.  In addition, note that, in relation to the Arnold Road site, additional relocation costs are likely to be incurred, to be determined, to be funded from General Fund resources.

8. To note that, in relation to the Hereford scheme, the scheme is still subject to final sign off following consultation with residents on the final scheme layout and number of units.

9.    To approve the principle of acquiring Section 106 affordable units from developers, and authorise officers to negotiate with both Registered Providers and the developers on a potential acquisition in relation to the two sites outlined in 9.12 to 9.17 to the report.

10.To note that a future report will be submitted to Cabinet regarding the setting up of a housing company or companies to help deliver the Authority’s strategic objectives, as detailed in section 10 of the report.

11. To note that as part of the review to identify savings within the HRA, the Accommodation SLA will be examined, there is a likelihood that the General Fund will be affected, as highlighted at 11.3 of the report.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Resources, D&R (C. Holme)

(Finance Business Partner (P. Leeson)

(Senior Accountant (K. Ball)