Agenda item

HRA Business Plan Review - New Build Housing Delivery

Purpose of this report:

· Is to provide members with an overview of the proposed new build housing schemes which are in a position to deliver through entry into a build contract with a contractor.

· Seek member approval to the recommendations made for each project as set out in business cases within Annexe 1 using the financial strategy as set out in the Housing Revenue Account Business Plan Strategic Review Report and Annexes 1-3.

· Seek member approval of the revised budgets as set out in Annexe 2.

Recommendation

2.1 It is recommended that the Executive, consider this report and information within the Annexes and make the following recommendations to Council as set out in business cases in Annexe 1 of this report and summarised Annexe 2.

· Annexe 1a - Site C Ockford Ridge, Godalming – members previously approved budgets for the scheme in annual Budget Council Meeting for the delivery of 30 new homes and retrospective approval is sought for transparency of the total scheme cost (full cost not previously reported) supported by the viability assessment and net revenue impact in the business case

· Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

· Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

· Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

· Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

· Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

· Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

· Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs

2.2 It is recommended that Executive approve the budgets for each scheme totalling £21,252,208m as set out in Annexe 2.

Decision:

RESOLVED that the Executive recommends to Council

1. the following be approved as set out in business cases in Annexe 1 of the report and summarised in Annexe 2:

· Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

· Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

· Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

· Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

· Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

· Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

· Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs.

2. the budgets for each scheme totalling £21,252,208m be approved as set out in Annexe 2.

Reason:

To seek Full Council approval for the development projects described in this report and Annexe 1 a–h as part of the council’s new affordable homes programme financed in compliance with the HRA Business Plan Strategic Review report.

[This is a recommendation to Council and therefore not subject to call-in]

Minutes:

Councillor Palmer, Co-Portfolio Holder for Housing (Delivery) presented the report which set out detailed proposals for a number of new build housing schemes. A number of assumptions had been made, including that right to buy would reduce the long term assets created by the construction. All proposals were financially viable and met the Council’s strategic priority to provide affordable homes.

Councillor Mulliner spoke on this item, including the way in which these projects were presented and wondered whether the assumptions were sufficiently cautious.

In response, Councillor Palmer advised that a balance had to be struck between what could realistically be achieved and the reserves which would be retained. It was felt that the assumptions were appropriate and he welcomed future monitoring of the position.

Councillor Williams welcomed the proposals which would provide genuinely affordable and energy efficient homes for those in need. The Leader echoed the comments and welcomed the proposals.