Decision details

Application for Grant funding from the Community Housing Fund

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decisions:

(Cabinet Member with Special Responsibility Councillor Warriner)

 

Cabinet received a report from the Director of Economic Growth and Regeneration, to approve a grant application to fund the pre-development costs to support a community led development being brought forward by Halton Senior Co-Housing Group Ltd.

 

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

 

 

Option 1: Approve the grant funding 

Option 2: Do not approve the grant funding

Advantages

The grant will enable the community group to advance their proposals and get to a point where they have a deliverable scheme.  The principle of a scheme of this type being supported has already been established through pre-application advice which was positive.

The group have already been directly involved in the original Co-Housing Scheme and have the skills and experience to bring this project to fruition.

It will increase the housing options for older people providing a full range of tenures and help balance housing markets.

It will encourage other community groups to take projects forward. 

The units will achieve Passivhaus standards.

The council can demonstrate to MHCLG/Homes England the funding has been used for the purpose it was intended.

The funding could be used to support other projects.

Disadvantages

The funding could be spent on other projects. 

It will not deliver a community led scheme or any of the associated benefits. 

If the group were to seek funding through Homes England, their bid may be unsuccessful at a point where the council has unallocated Community Housing Fund reserves. 

The outstanding matters outlined in Appendix 1 will remain unresolved

Risks

There is always uncertainty with any development that it will be viable, deliverable and will obtain planning permission which could result in abortive costs.  However, pre-application planning advice has been positive.   The group will be required to enter into an option agreement on the land before any grant is paid, this should be minimised.  The grant payments will also be made in phased payments, again to reduce the risk of abortive costs being incurred. 

Loss of opportunity

 

Other than the grant payment, there are no further risks upon the council.

 

Reputational damage

 

The officer preferred option is Option 1. 

Whilst recognising the level of grant required to fund the pre-development costs is considerable, in construction             terms this represents a small proportion of the overall scheme costs.   Halton Senior Co-Housing Limited is already positioning itself to take this scheme forward, and has obtained an in principle approval for the necessary development finance to fund the project. 

 

Councillor Warriner proposed, seconded by Councillor Hughes:-

 

“That recommendations (1) and (2), as set out in the report, be approved with the following revision to recommendation (3):

 

·         That the Section 151 Officer be authorised to update the General Fund Revenue Budget to reflect any decision taken under recommendation 1 to be funded from the Revenue Grants Unapplied, and subject to the Section 151 Officer being satisfied on appropriate grant conditions being provided or agreed and there being a nil impact, (and no clawback) on the Council’s resources and full recovery of any extant sums.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)             That up to £160,000 grant towards the pre-development costs of a new community led development (as detailed in exempt Appendix 1 to the report) be set aside from the Community Housing Fund.  

(2)             That, subject to requirements from Lancashire County Council Highways Authority, Cabinet authorise officers to bid for Homes England – Community Housing Fund Phase 1 Infrastructure costs (as detailed in exempt Appendix 1 to the report) should this be required.

(3)             That the Section 151 Officer be authorised to update the General Fund Revenue Budget to reflect any decision taken under recommendation 1 to be funded from the Revenue Grants Unapplied, and subject to the Section 151 Officer being satisfied on appropriate grant conditions being provided or agreed and there being a nil impact, (and no clawback) on the Council’s resources and full recovery of any extant sums.

 

Officers responsible for effecting the decision:

 

Director of Economic Growth and Regeneration

Director of Corporate Services

 

Reasons for making the decision:

 

The proposal seeks to provide an exemplar residential development.  This will offer a number of added values and benefits and positively contribute to delivery of the council’s Housing Strategy by providing 20 new homes suitable to meet the needs of older people, which will be of high quality and design and will also increase the provision of affordable housing in the local area.  The decision is consistent with the Corporate Plan and links directly with improving the quality and availability of housing.

Report author: Kathy Beaton

Publication date: 12/03/2019

Date of decision: 05/03/2019

Decided at meeting: 05/03/2019 - Cabinet

Effective from: 19/03/2019

Accompanying Documents: