Appendix 3 to this item includes exempt information pursuant to Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972. If Council wishes to discuss matters relating to the information set out in Appendix 3 to the report, it will be necessary for the Council to pass a resolution to exclude the press and public from the meeting (as set out at agenda item 21).

The Executive Director (Communities and People) submitted a report to Cabinet on 13 September 2023 seeking approval to make available the required budget provision and the necessary project approval and delegations to enable the Council to proceed with entering into the national Local Authority Housing Fund Round 2.

The Cabinet minutes are available at Item 16b.

Councillor Linda Smith, Cabinet Member for Housing, will present the report and present Cabinet’s recommendations.

Recommendation: Cabinet recommends that Council resolves to:

1.    Approve the allocation of £1,863,100 capital budget from the Housing Revenue Account for the Council’s investment to purchase the properties as part of Local Authority Housing Fund Round 2, with £1,069,860 being funded from HRA borrowing and the rest covered by grant of £793,240.

Council considered the report from the Executive Director (Communities and People) seeking approval to make available the required budget provision and the necessary project approval and delegations to enable the Council to proceed with entering into the national Local Authority Housing Fund Round 2.

Cllr Corais and Munkonge joined the meeting.

Councillor Linda Smith, Cabinet Member for Housing, introduced the report, proposed the recommendation and answered questions.

The recommendation was agreed on by being seconded by Councillor Ed Turner, Deputy Leader (Statutory) and Cabinet Member for Finance and Asset Management, and put to the vote.

Council resolved to:

1. Approve the allocation of £1,863,100 capital budget from the Housing Revenue Account for the Council’s investment to purchase the properties as part of Local Authority Housing Fund Round 2, with £1,069,860 being funded from HRA borrowing and the rest covered by grant of £793,240.

The Executive Director (Communities and People) has submitted a report to seek approval to make available the required budget provision and the necessary project approval and delegations to enable the Council to proceed with entering into the national Local Authority Housing Fund Round 2.

Cabinet is recommended to:

1.    Approve the Council becoming part of the Local Authority Housing Fund Round 2 in order to deliver 4 new affordable homes;

2.    Recommend to Council the allocation of £1,863,100 capital budget from the Housing Revenue Account for the Council’s investment to purchase the properties as part of Local Authority Housing Fund Round 2, with £1,069,860 being funded from HRA borrowing and the rest covered by grant of £793,240; and

3.    Delegate authority to the Executive Director (Communities and People) in consultation with the Cabinet Member for Housing, the Head of Financial Services/Section 151 Officer, and the Head of Law and Governance/Monitoring Officer to enter into agreements and contracts to facilitate the purchase by the Council of housing (to be held in the HRA) within the identified budget and within this project approval.

The Executive Director (Communities and People) had submitted a report to seek approval to make available the required budget provision and the necessary project approval and delegations to enable the Council to proceed with entering into the national Local Authority Housing Fund Round 2.

Councillor Linda Smith, Cabinet Member for Housing, reported that Round 1 of the Local Authority Housing Fund had enabled the Council to purchase 6 new affordable homes: Round 2 would allow the delivery of a further 4 new affordable homes of which 3 would be used during the initial tenancy to house Afghan families being resettled in the country. The fourth property would be used for general temporary accommodation needs.

Around 40% of the cost of the properties would be met by the grant funding from government, meaning that the rent received from the tenants would more than cover any interest on the loan to be taken out to cover the cost of the Council’s share.  It would strengthen the Council’s HRA, as well as helping the Council to meet its ambition as a City of Sanctuary.

Cabinet resolved to:

1.       Approve the Council becoming part of the Local Authority Housing Fund Round 2 in order to deliver 4 new affordable homes;

2.       Recommend to Council the allocation of £1,863,100 capital budget from the Housing Revenue Account for the Council’s investment to purchase the properties as part of Local Authority Housing Fund Round 2, with £1,069,860 being funded from HRA borrowing and the rest covered by grant of £793,240; and

3.       Delegate authority to the Executive Director (Communities and People) in consultation with the Cabinet Member for Housing, the Head of Financial Services/Section 151 Officer, and the Head of Law and Governance/Monitoring Officer to enter into agreements and contracts to facilitate the purchase by the Council of housing (to be held in the HRA) within the identified budget and within this project approval.