Agenda item

(Councillor with Special Responsibility Councillor Kerr)

Report of the Corporate Director (Regeneration)

(Cabinet Member with Special Responsibility Councillor Kerr)

Cabinet received a report from the Corporate Director (Regeneration) to obtain Cabinet approval to permit a grant application for £90K from the affordable housing Section 106 commuted sums.

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

Option 1: Approve the £90K grant to Adactus Housing Association from the S106 commuted sum funds, which will provide the necessary funding in this financial year to make the scheme viable, subject to the resultant £90K from the £200K commitment contained in the Private Sector Housing Capital Programme being used to achieve further acquisitions of properties on Bold Street as originally anticipated prior to the Regional Housing Pot funding being reduced.

An agreement will be compiled to confirm the grant. The money will be awarded to the Association at the commencement of the development along with £110K from the Private Sector Housing Capital Programme. The agreement will set out a requirement that the Association must liaise with the Council on any change of use or adaptation to the management of the properties that would impact on the original use and nomination rights.

Option 2: Do not approve the £90K grant to Adactus Housing Association from the S106 commuted sum funds.  There will still be a requirement to provide a £200K commitment from the Private Sector Housing Capital Programme in this financial year, which will ensure the Marlborough Road scheme continues to be viable, but will not enable any opportunities to be gained from releasing £90K of RHP monies for other purposes.  Instead, the £90K S106 money will be used to support an alternative affordable housing project within the district.  To date, partner Registered Social Landlords have submitted informal expressions of interest for a number of possible schemes, which include three schemes in Lancaster city, a scheme to provide 6 x shared ownership properties in rural areas, and two schemes in North Lancaster.  All of these schemes would be subject to formal approval and sufficient funding being identified.  The Marlborough Road scheme is at an advanced stage of preparation and it is fully anticipated that it can be commenced in the near future.

Option 3: Approve the £90K grant and then re-allocate the released funds from the Private Sector Housing Capital Programme into the Disabled Facilities Grant programme (DFG's). Members will recall that the report to Cabinet in June highlighted the need for a waiting list to be introduced to manage the reduction in budget.  Since this was introduced following Cabinet's decision, the service has experienced delays in receiving new referrals from Occupational Therapy at LCC and although officers are in discussions with county to seek a resolution, at this point in time, there is no guarantee that any additional funds allocated to DFG's would be able to be spent or committed by the end of March 2011.   Furthermore, this option offers no benefits in terms of targeting additional financial resources in bringing about the continued regeneration of the West End, as a direct result of using the Section 106 commuted sums funds, which is expressly why approval is being sought for the Marlborough Road scheme instead of alternative affordable housing schemes elsewhere in the district. 

Option 4: Approve the £90K S106 grant but then leave the resulting £90K of RHP funding unallocated, to cover funding risks associated with providing the remaining £274K funding needed for Marlborough Road in future years or any future changes in DFG demand.  There is no certainty that the £90K of RHP funding, if left unallocated, would be used to support the regeneration of the West End; it would depend on Members’ future decisions.  Furthermore, in line with the comments above, there is no clear information on future funding needs for DFGs.  Additionally, and as described in paragraph 1.7 above, should the Council not be in a position to progress the acquisition and demolition on Bold Street, then its continuing decline is likely to impact negatively on the potential sales and take up of properties on the Marlborough Road scheme and so potentially  jeopardise the delivery of the overall intention to secure economic and social benefits in the West End through the implementation of a comprehensive and co-ordinated programme of regeneration.

The officer preferred option is Option 1

Councillor Kerr proposed, seconded by Councillor Ashworth:-

“(1)      That the allocation of £90K of S106 monies to Adactus Housing Association be approved,  to bring forward the development of 23 units of affordable housing at Marlborough Road, West End, Morecambe.

(2)        That the General Fund Capital Programme be updated to reflect the above Section 106 grant allocation to Adactus for Marlborough Road, and that £90K of Regional Housing Pot funding be re-allocated from the Marlborough Road scheme to the Bold Street scheme, to continue with further acquisition and demolition.”

Councillors then voted:-

Resolved:

(5 Members (Councillors Ashworth, Barry, Bryning, Kerr and Langhorn) voted in favour and 1 Member  (Councillor Robinson) abstained.)

(1)        That the allocation of £90K of S106 monies to Adactus Housing Association be approved, to bring forward the development of 23 units of affordable housing at Marlborough Road, West End, Morecambe.

(2)        That the General Fund Capital Programme be updated to reflect the above Section 106 grant allocation to Adactus for Marlborough Road, and that £90K of Regional Housing Pot funding be re-allocated from the Marlborough Road scheme to the Bold Street scheme, to continue with further acquisition and demolition.

Officers responsible for effecting the decision:

Corporate Director (Regeneration)

Reasons for making the decision:

The decision will enable the delivery of the Marlborough Road proposal and contribute to the continued implementation of the West End Masterplan in line with the Council’s corporate priorities.