The Head of Housing Services has submitted a report toconsider and approve changes to the arrangements between the Council’s group of Housing companies and the Council’s Housing Revenue Account for the delivery of affordable housing in response to recent government policy changes and to agree to a review of future Oxford City Housing Limited (OCHL) development with a view to expanding activity and accelerating affordable housing delivery.

Recommendations: That Cabinet resolves to:

1.    Agree that the Oxford City Housing Limited group of companies (OCHL) continues with the current development and acquisition programmes as detailed in paragraphs 9,12 and 14 of this report;

2.    Agree that the Council’s Housing Revenue Account from this date onwards purchases and manages the social rented and shared ownership units (with the exception of the Barton Park units);

3.    Recommend to  Council to increase the HRA capital programme by £45.303m so that adequate additional budgetary provision is made available for the acquisitions to take place ( see Appendix 1);

4.    Recommend to Council to approve a revised HRA budget and Business Plan that incorporates the new acquired dwellings that impacts on rental income, maintenance spend, interest payments, debt redemption activity and other matters as set out in Appendix 2;

5.    Recommend to  Council to approve the re-phasing of the loans from the  General Fund Capital Programme in relation to the borrowing activity of OCHL over the MTFP period 2019/20 to 2022/23(see appendix 1)

6.    Agree that delegated authority is given to the Assistant Chief Executive in consultation with the Head of Finance and the Head of Law and Governance to approve and facilitate the agreed purchase by the HRA of  all affordable  housing units at the OHCL development sites.

7.    Authorise Phase 2 of  the  review of the role and future activity of OCHL and the detail of the review as set out in  paragraph 17 of the report; and

8.    Grant delegated authority to the Assistant Chief Executive in consultation with the Head of Finance and Head of Law and Governance to approve  the sale of sites as set out in the OCHL business plan to OCHL providing that such sales comply with the mechanism set out in paragraph 31 of this report and s123 of the Local Government Act 1972, and are made on the basis that following development all affordable housing units at the sites would be purchased back by the Council through the Housing Revenue Account.

The Head of Housing Services had submitted a report to consider and approve changes to the arrangements between the Council’s group of Housing companies and the Council’s Housing Revenue Account for the delivery of affordable housing in response to recent government policy changes and to agree to a review of future Oxford City Housing Limited (OCHL) development with a view to expanding activity and accelerating affordable housing delivery.

The Board Member for Affordable Housing, Councillor Mike Rowley introduced the report, once again thanking the Scrutiny Committee for its contribution to this important area of work. He reminded Cabinet members of the original reason for the establishment of the Council’s housing company and how the subsequent change in Government policy now necessitated a change in approach with a view to expanding activity and accelerating affordable housing delivery.

It was important to emphasise that the new Government policy was to remove restrictions on the ability to borrow within the HRA in order to stimulate an increase in new supply. It was also important to be clear that the increased debt will need to be serviced and paid back.

The Head of Housing Services said  progress of the development programme, as well as the further review into how to both increase and accelerate delivery,  would be monitored via the quarterly meetings of the Shareholder. The revised Council budget proposals within the report are to support the agreed development programme of OCHL. It was noted that there was capacity to deliver houses on the sites listed in paragraph 13 of the report and a number of further sites could be brought forward if there was greater capacity. The focus was currently on larger sites which were, generally, more cost effective to develop than smaller ones.

 Cabinet resolved to:

1.Agree that the Oxford City Housing Limited group of companies (OCHL) continues with the current development and acquisition programmes as detailed in paragraphs 9,12 and 14 of this report;

2.Agree that the Council’s Housing Revenue Account from this date onwards purchases and manages the social rented and shared ownership units (with the exception of the Barton Park units);

3.Recommend to  Council to increase the HRA capital programme by £45.303m so that adequate additional budgetary provision is made available for the acquisitions to take place ( see Appendix 1);

4.Recommend to Council to approve a revised HRA budget and Business Plan that incorporates the new acquired dwellings that impacts on rental income, maintenance spend, interest payments, debt redemption activity and other matters as set out in Appendix 2;

5.Recommend to  Council to approve the re-phasing of the loans from the  General Fund Capital Programme in relation to the borrowing activity of OCHL over the MTFP period 2019/20 to 2022/23(see appendix 1);

6.Agreethat delegated authority is given to the Assistant Chief Executive in consultation with the Head of Finance and the Head of Law and Governance to approve and facilitate the agreed purchase by the HRA of  all affordable  housing units at the OHCL development sites;

7.Authorise Phase 2 of  the  review of the role and future activity of OCHL and the detail of the review as set out in  paragraph 17 of the report; and

8.Grant delegated authority to the Assistant Chief Executive in consultation with the Head of Finance and Head of Law and Governance to approve  the sale of sites as set out in the OCHL business plan to OCHL providing that such sales comply with the mechanism set out in paragraph 31 of this report and s123 of the Local Government Act 1972, and are made on the basis that following development all affordable housing units at the sites would be purchased back by the Council through the Housing Revenue Account.