The Grants Determination Sub-Committee heard from the Affordable Housing Programme Manager and:

• Noted that the report concerned progress on the Local Housing Affordable Grant Programme established under Commissioners in 2015.
• Noted the content of appendix to the report which was tabled at the meeting.
• Noted the comments of Grants Scrutiny Sub-Committee that it did not object to the proposal in principle but had some concerns around value for money and the management of the properties.
• Noted that the report lacked detail on the location of the proposed properties and arrangements for their management and requested that this information be provided.
• Supported the proposal in principle but were concerned with a number of operational matters/issues around delivering the second round of the programme.

DECISION

That having considered the report and Officers’ recommendations, the following be approved:

1. That subject to the necessary budget approval by the Mayor in Cabinet in January 2018, ‘Right To Buy grant funding’ be awarded to the following registered housing providers and for the following amounts: East End Homes: £375,000 and Swan Housing Association: £2,439,760 (as outlined in point 4.3 of the report).
2. That in addition, 10% uplift to the agreed amounts be approved to take account of potential increases in build or acquisition costs.
3. That the variations to the bid submitted by the Registered Provider Arhag that were subsequently approved by the Mayor on the 11th August 2017 be noted.
4. That the change in the scheme completion date for 34-40 Bow Road E3 being delivered by Arhag be noted.
5. That in respect to an existing grant approval to East End Homes, approve the change in purchase completion date and the grant purpose be extended to include the purchase of residential properties on the open market.
6. That the Corporate Director of Place be authorised to agree extensions of time on schemes approved for grant funding, which shall not in any event exceed December 2020.
7. That the Corporate Director, Place, be authorised to agree the terms of, and enter into, any contractual or ancillary documentation to give effect to the above recommendations, with recommendation 1 (above) to be effected only upon budgetary approval by the Mayor in Cabinet in January 2018.
8. That detail on the location of the proposed properties and arrangements for their management as requested be provided to the Sub-committee.

The Grants Determination Sub-Committee heard from the Affordable Housing Programme Manager and:

• Noted that the report concerned progress on the Local Housing Affordable Grant Programme established under Commissioners in 2015.
• Noted the content of appendix to the report which was tabled at the meeting.

The Sub Committee heard from the Chair of GSSC and noted the following feedback:

• that GSSC did not object to the proposal in principle but had some concerns around value for money and the management of the properties.
• that the report lacked detail on the location of the proposed properties and arrangements for their management and requested that this information be provided.
• GSSC supported the proposal in principle but were concerned with a number of operational matters/issues around delivering the second round of the programme.

The Chair invited Members of the Sub-Committee to comment on the report.  They expressed concern about:

• how the RSLs would manage properties acquired where these properties were isolated from others managed by the RSL.
• the implications of fragmented housing stock.
• the potential impact on vulnerable residents.
• that the proposal might give RSLs carte blanche to spend.

RESOLVED:

That having considered the report and Officers’ recommendations, the following be approved:

1. That subject to the necessary budget approval by the Mayor in Cabinet in January 2018, ‘Right To Buy grant funding’ be awarded to the following registered housing providers and for the following amounts: East End Homes: £375,000 and Swan Housing Association: £2,439,760 (as outlined in point 4.3 of the report).
2. That in addition, 10% uplift to the agreed amounts be approved to take account of potential increases in build or acquisition costs.
3. That the variations to the bid submitted by the Registered Provider Arhag that were subsequently approved by the Mayor on the 11th August 2017 be noted.
4. That the change in the scheme completion date for 34-40 Bow Road E3 being delivered by Arhag be noted.
5. That in respect of an existing grant approval to East End Homes, approve the change in purchase completion date and the grant purpose be extended to include the purchase of residential properties on the open market.
6. That the Corporate Director of Place be authorised to agree extensions of time on schemes approved for grant funding, which shall not in any event exceed December 2020.
7. That the Corporate Director, Place, be authorised to agree the terms of, and enter into, any contractual or ancillary documentation to give effect to the above recommendations, with recommendation 1 (above) to be effected only upon budgetary approval by the Mayor in Cabinet in January 2018.
8. That detail on the location of the proposed properties and arrangements for their management as requested be provided to the Sub-committee.

Alison Thomas, Service Head for Private Sector Affordable Housing presented this report stating that the Commissioners in December 2015 agreed £7.06m of retained Right to Buy receipts could be used to set up a Local Housing Affordable Grant programme for the period of 2016/19 for the provision of affordable housing in Tower Hamlets.

She said there had been considerable interest in the scheme when it was launched and a report to Cabinet in February 2017 had requested an increase to the amount of grant.

She referred Members to point 4.3 of the report and said that Swan and East End Homes had been awarded grant funding for amounts detailed in the table. She made reference to point 6.4 of the report and said the ARHAG scheme had run into some difficulty and were now asking for a lesser amount.  With regard to East End Homes they want to make purchases in other areas of the borough because the high value of properties on their estates have prohibited them in buying back ex right to buy homes.

Members of the Sub-Committee made the following comments and asked questions in relation to the report:

·         With respect to East End Homes buybacks (page 113 point 7.3) would the Council also be competing or bidding for those homes?

·         Can you say more about ARHAG? Who are they and how big is their portfolio?

·         In reference to point 7.4 and the increase in the capital budget, are you confident that the monies allocated will be spent by the 2020 deadline?

·         How does the Council build on its relationship with registered providers such as Swan and East End Homes?

·         Why did East End Homes not buyback their own properties on their estates?

Members of the Sub-Committee AGREED to recommend the Grants Determination Sub-Committee to

2.1       Consider and endorse Officers’ recommendations to award, subject to the necessary budget approval by the Mayor in Cabinet in January 2018, Right to Buy grant funding for the amounts listed to the Registered Providers outlined in point 4.3 of the report. In addition, allow 10% uplift to the agreed amounts to take account of potential increases in build or acquisition costs.

2.2       Note the variations to the bid submitted by the Registered Provider Arhag that were subsequently approved by the Mayor on the 11^th August 2017.

2.3       Note the change in scheme completion date for 34-40 Bow Road E3 being delivered by Arhag.

2.4       In respect to an existing grant approval to East End Homes, approve the change in purchase completion date and the grant purpose to be extended to include the purchase of residential properties on the open market.

2.5       Authorise the Corporate Director of Place to agree extensions of time on schemes approved for grant funding, which shall not in any event exceed December 2020.

2.6       Authorise the Corporate Director of Place, to agree the terms of and enter into, any contractual or ancillary documentation to give effect to the above recommendation, with recommendations 2.1 to be  ...  view the full minutes text for item 5