The Sub-Committee considered the report which proposed to allocate Right to Buy receipt grant funding to Mulberry Housing Society to part finance the acquisition of 42 properties in Burdett Road.  The grant request would contribute 30% of the scheme costs associated with the rented element.

The Sub-Committee were reminded that on 7^th February 2018, the Mayor in Cabinet agreed to establish two housing delivery vehicles to expand the range of options open to the Council to deliver new housing supply across tenures. They also approved £9M of retained Right to Buy receipts for Mulberry Housing Society to purchase affordable housing. 

The Sub - Committee also noted the terms of the proposed grant and that Officers considered that the proposal would provide good value for money.

The Mayor enquired and the Chair of the GSSC reported that the Sub-Committee asked questions about the management of the properties on completion of the scheme and the freehold interest. The GSSC were satisfied with the responses provided in respect of these issues and endorsed the recommendations. The Mayor then invited GDSC Members to comment on the report and they indicated that they supported the proposals.

DECISION

1.         That the Corporate Director Place be authorised  to award Right To Buy receipt grant funding of £2.3m to Mulberry Housing Society; in addition, allow 10% uplift to the agreed amounts to take account of potential increases in acquisition costs.

2.         That the Corporate Director Place be authorised to enter into a grant agreement and make decisions relating to any associated matter to give effect to the delegation referred to in resolution 1 above.

3.         To note the Equalities Impact Assessment / specific equalities considerations as set out in Paragraph 4

Jen Pepper, Affordable Housing Programme Manager presented this report stating that in February 2017, the Mayor in Cabinet had approved a £9M fund of retained Right to Buy receipts to be made available for Mulberry Housing Society in order to purchase affordable homes.

Ms Pepper informed Members that Cabinet had agreed to establish two housing delivery vehicles in order to expand the range of options available to the Council to deliver new supply across tenures, both permanent and temporary homes.

Mulberry Housing Society is a community benefit society to provide homes for sub-market rent, subsidised by grant of land and retained Right to Buy receipts, made possible by governance arrangements within which the Council holds a minority position.

Ms Pepper referred to 1.4 of the report and stated the request was to use S106 monies for the purchase of a development in Burdett Road, which comprises of 42 flats all at social target rents. The report recommends a grant of £2.3m in RTB receipts to facilitate this acquisition.

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

·         In reference to point 3.2 the Newfoundland Development is contributing to the S106?

·         Who will manage the Mulberry Housing Society?

·         Is the arrangement in place a Housing Delivery Vehicle?

·         What is the completion date for the acquisition?

·         What mechanisms are in place to ensure the desired outcome is achieved?

Members of the Sub-Committee AGREED to recommend to the Grant’s Determination Sub-Committee to:

1.    Authorise the Corporate Director Place to award Right to Buy receipt grant funding of £2.3m to Mulberry Housing Society; in addition, allow 10% uplift to the agreed amounts to take account of potential increases in acquisition costs.

2.    Authorise the Corporate Director Place to enter into a grant agreement and make decisions relating to any associated matter to give effect to the delegation referred to in paragraph 1 above.

3.    To note the Equalities Impact Assessment /specific equalities considerations as set out in Paragraph 4.