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 effected only upon budgetary approval by the Mayor in Cabinet in January 2018.

Members of the Grants Scrutiny Sub-Committee requested officers to report back on the outcome of recommendation 2.4 and 2.5. when appropriate.