Issue details
LBTH/GLA Contract for the £13.27m Decent Homes Additional Backlog Funding
Agree the Council to get into contract with GLA for the for the £13.27m Decent Homes Additional Backlog Funding
Amend 2013 Cabinet adopted funding profile for Decent Homes Scheme Costs totalling £181.37 million comprising GLA grant £94.50 million and Council HRA Resources: £86.87 million to: Scheme Costs: £181.37 million encompassing GLA grant: £107.77 million Council HRA Resources: £73.6 million.
Although the DCLG was initially funding £94.50 million of the works, financing for the full £181.37 million was also made up of a mixture of HRA balances, specific capital resources set aside, and leaseholder contributions, with HRA borrowing being the last resort if necessary. The new £13.27 million grant reduces the reliance on these other HRA capital resources and increases the grant funding for the DHs programme
The additional grant funding of £13.27 million was awarded in accordance with the national programme objective to reduce the level of non-decent backlog stock down to 10% by the end of the backlog programme. The Council’s GLA funded backlog programme concludes in 2015/16. Furthermore, subject to meeting the criteria, partly or wholly funded leasehold DHs works by the £13,27m GLA grant will be subject to a £15k cap in 2015/16.
Under the condition of the GLA £13.27m addition funding grant, the Council is obliged, under a contract, to make 917 homes decent in 2015/16 - the programme has already commenced. Relevant Q1 spend and decency outturn has been reported to the GLA. As the GLA reimburses Authorities for the relevant expenditure, the Council will need to get into contract urgently for the eligible spend of circa £2m in Q1 to be reimbursed.
Decision type: Key
Decision status: Recommendations Approved
Wards affected: (All Wards);
Notice of proposed decision first published: 07/09/2015
This decision will be taken under urgency procedures.
Reason for urgency:
The additional grant funding of £13.27 million was awarded in accordance with the national programme objective to reduce the level of non-decent backlog stock down to 10%. The Council was however effectively already funding these works as part of the £181.37 million enhanced programme. The due diligence process undertaken on this matter has been extensive (significant clarification required from the GLA on several matters) as the contract varied from the standard GLA contract due to additional measures such as the leasehold cap. Under the contract with the GLA the Council is obliged to make 917 homes decent in 2015-16. The programme has already began, but the contract has not be signed. The relevant Q1 spend and decency outturn has already been reported to the GLA and because the GLA reimburses Authorities for the relevant expenditure. The Council will need to enter into contract urgently for the eligible spend of circa £2m in Q1 to be reimbursed.
Decision due: Not before 15th Sep 15 by Mayor's Executive Decision Making
Lead member: Deputy Mayor and Cabinet Member for Housing Management and Performance
Lead director: Corporate Director, Development & Renewal
Department: Development and Renewal
Contact: Jackie Odunoye odunoye@hotmail.com.
Consultation process
N/a
Has an Equality Analysis been carried out and if so the result of this Assessment?: N/a
What supporting documents or other information will be available?: Adoption of Housing Revenue Account Capital Estimates: Decent Homes Programme - 2013-14 to 2015-16 http://moderngov.towerhamlets.gov.uk/documents/s43997/6.1a%20HRA%202013-14%20capital%20estimates%20report%20-%20Final.pdf GLA letter granting the £13.27million
Agenda items
- 24/09/2015 - Mayor's Executive Decision Making LBTH/GLA Contract for the £13.27m Decent Homes Additional Backlog Funding 24/09/2015