Decision details

To consider the report of the Cabinet Member for Housing and Local Services, seeking approval to accept the grant award and to approve expenditure on this capital scheme in accordance with the Council's Financial Procedure Rules, subject to confirmation of grant funding from the Home and Communities Agency (HCA) to Phase 2 of the Local Authority New Build Fund.

Following the City Council's successful 'Phase 1' bid to the HCA from the Local Authority New Build Fund to build 35 family sized Council owned homes for affordable rent on 6 former garage sites across the city.

The City Council submitted a further 'Phase 2' bid to build up to 20 new Council owned homes for affordable rent on 3 sites in the city in October 2009. The HCA will announce the results of the 'Phase 2' bidding process in December 2009 and work again needs to commence quickly thereafter, to meet Government's start on site deadlines.

In the unlikely event of the 'Phase 2' bid being wholly unsuccessful, then this decision requirement will be withdrawn.

(i)   To accept the grant sum of £ 970,804 from the Homes and Communities Agency (HCA) to build new Council homes under the LA New Build scheme on 2 sites in the city at:-

• Leaside Way
• Cumbrian Way (part)

(ii)   To approve, in accordance with Financial Procedure Rules, overall capital expenditure of £1,941,608 within the Housing Revenue Account Capital Programme for 2010-2011 and 2011 – 2012 for the following additional LA New Build schemes:-

(iii)  To delegate authority to the Solicitor to the Council, following consultation with the Executive Directors of Neighbourhoods and Resources and Cabinet Member for Housing and Local Services, to undertake all necessary actions to achieve the proposals within the Report, such as entering into the Homes and Communities Agencies grant contract, all consequential contracts, and rent setting for the new homes.

In accordance with the Council's Financial Procedure Rules, Cabinet is required to formally accept a further HCA grant for the LA New Build scheme, and approve total expenditure of £1.9M for Phase 2 of this Scheme within the HRA Capital Programme as described above.

The Council could decline to accept the funding allocation, but this would mean that the new homes could not be built, and neither would they contribute to meeting the Council’s strategic affordable housing targets.