Decision details

Delivering New Council Housing in the District

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Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To set out the options for increasing the availability of council housing within the district and to seek approval to procure a preferred partner to deliver a new build housing programme, and to approve the establishment of an acquisition programme.

Decisions:

(Cabinet Member with Special Responsibility Councillor Leytham)

Cabinet received a report from the Chief Officer (Health & Housing) which set out the options for increasing the availability of council housing within the district and sought approval to procure a preferred partner to deliver a new build housing programme, and the establishment of an acquisition programme.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

	Option 1: The council establishes a new build council housing programme utilising a framework agreement to increase the council housing stock in the district	Option 2: The council establishes a new build council housing programme utilising a framework agreement together with a scheme to acquire ex-council housing stock to increase the council housing stock in the district	Option 3: The council establishes a new build council housing programme utilising an alternative procurement route together with a scheme to acquire ex-council housing stock to increase the council housing stock in the district
Advantages	Addresses the specific housing needs identified with in the district Delivers new homes at affordable rents (social rent) Community leadership acting as an exemplar in building socially, environmentally, and economically sustainable homes Provide local employment opportunities Will contribute to the economic growth of the district Will generate further rental income for future housing investment	Addresses the specific housing needs identified with in the district Delivers new homes at affordable rents (social rent) Community leadership acting as an exemplar in building socially, environmentally, and economically sustainable homes Provide local employment opportunities Will contribute to the economic growth of the district Will generate further rental income for future housing investment Maximises the opportunities and be easier to manage	Addresses the specific housing needs identified with in the district Delivers new homes at affordable rents (social rent) Community leadership acting as an exemplar in building socially, environmentally, and economically sustainable homes Provide local employment opportunities Will contribute to the economic growth of the district Will generate further rental income for future housing investment
Disadvantages	Increases future revenue costs associated with property management, however will be partly mitigated by the rental policy adopted for the new builds	Increases future revenue costs associated with property management, however will be partly mitigated by the rental policy adopted for the new builds Ex-council properties may require additional capital investment to meet the ‘Lancaster Decent Homes Standard’, however will be partly mitigated by being cheaper than the cost of new build	The council would need to fully assess any other framework that it is currently not a party to and also apply to access the framework. There would be increased resource requirements in terms of expertise, time and money. To secure provision of new homes through a traditional procurement route the council would need to undertake the full OJEU (Official Journal of the European Union) process itself which would result in increase resource requirements in terms of expertise, time and money.
Risks	Unable to efficiently deliver the programme due to organisational capacity, however can be partly mitigated by entering into a service and delivery agreement with LRPP (Lancashire Regeneration Property Partnership)	Unable to efficiently deliver the programme due to organisational capacity, however can be partly mitigated by entering into a service and delivery agreement with LRPP	Unable to efficiently deliver the programme due to organisational capacity

The proposals set out in the report form a sound basis for the Council to deliver much needed new affordable council homes in the district and also provide added value in meeting the wider social, environmental and economic objectives of the council. The officer preferred option was option 2 as it maximised the opportunities to increase the council housing stock in the district, and addressed the in-principle decision taken by Cabinet in February to invest in new one-bedroom accommodation within the district using funding from the Business Support Reserve.

Councillor Leytham proposed, seconded by Councillor Hanson-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1) That a programme of new build council housing be established as set out in the report.

(2) That the Council works with the Lancashire Regeneration Property Partnership to develop a scheme to deliver a programme of new build council housing as set out in the report and that detailed proposals be brought back to Cabinet for approval prior to entering into any contractual commitment.

(3) That a scheme for acquiring ex-council housing properties also be established as set out in the report, and that detailed proposals be brought back to Cabinet for approval.

Officer responsible for effecting the decision:

Chief Officer (Health & Housing)

Reasons for making the decision:

The decision supports the Council’s core purpose, values and vision and will contribute to the realisation of the Council’s priority, health and wellbeing and is consistent with the Housing Strategy and Action Plan 2012 – 2017 which seeks to maximise opportunities to increase the existing portfolio of affordable housing in the Lancaster district.

Report author: Julie Whincap

Publication date: 08/11/2013

Date of decision: 05/11/2013

Decided at meeting: 05/11/2013 - Cabinet

Effective from: 16/11/2013

Accompanying Documents:

Delivering new council housing in the district PDF 115 KB