Agenda item - Housing Revenue Account - New Build Housing Delivery

The Executive are recommended to make the resolutions set out in the report at agenda item 14.

Co-Portfolio Holder for Housing (Delivery)

Springfield, Elstead

1. Progress with Option 4 to demolish the existing accommodation and re-develop a scheme that incorporates a variety of homes of varying sizes and tenures that can accommodate different individual and local housing need.

2. Delegate authority to the Strategic Director of Place, in consultation with the Portfolio Holder for Housing (Delivery), to submit a planning application, including demolition to facilitate delivery of 26 new affordable homes.

3. Approve the sale of shared ownership homes to be delivered on the site at Springfield with the Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the final terms of such sales having regard to market value and giving the Executive Head of Legal and Democratic Services authority to approve the final form of the sale agreements and any ancillary related legal agreement.

4. Delegate authority for Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the future sale of percentage shares of shared ownership homes.

5. Delegate authority for the Executive Head of Housing Services in consultation with the Executive Head of Finance to review and change the tenure of an affordable shared ownership home to affordable rented should the housing market negatively impact the sale of these homes (subject to provision of full financial information and appraisal and that there is not a negative net revenue impact to the business plan for the scheme)

6. Delegate authority to the Strategic Director of Place to:

i. Approve the commencement of the tender process for the demolition and construction contracts

ii. Approve the appointment of contractors following the appropriate procurement subject to the appointment being within the identified budget

iii. Approve the use of pre contract agreements with the preferred contractor to enable the development of the project and authorise spend in accordance with the budget.

iv. Approve enter into the JCT Contracts (Works/Design and Build) for both demolition and delivery of new homes.

v. Approve the entering into any related contractual documentation (including collateral warranties, novation agreements, easements other ancillary agreements) relating to the delivery of the project

vi. Approve the entering into any agreement (including paying any necessary sums provided they are within the project budget) with any utility or related provider to ensure the connection, moving, management of any services to facilitate or deliver the project.

vii. Approve entering into an agreement with Homes England should grant funding be secured from the Affordable Homes Delivery Programme (provided there is not a negative net revenue impact to the business plan for the scheme.)

7. Delegate authority to the Executive Head of Legal and Democratic Services to approve the final form of any legal agreements including those with utility companies and other statutory authorities.

The Executive RESOLVED to RECOMMEND to Council

1. The approval of a project budget allocation of £10,074,928m, with the delegation to Executive to approve the final budget once tender returns for the construction contract have been received.

Ockford Ridge (Site F)

I. Progress with Option 2 to demolish the existing accommodation and re-develop a scheme that incorporates a variety of homes of varying sizes and tenures that can accommodate different individual and local housing need.

II. Delegate authority to the Strategic Director of Place, in consultation with the Portfolio Holder for Housing (Delivery), to submit a planning application, including demolition to facilitate delivery of 20 new affordable homes.

III. Approve the sale of shared ownership homes to be delivered on the site at Site F, Ockford Ridge with the Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the final terms of such sales having regard to market value and giving the Executive Head of Legal and Democratic Services authority to approve the final form of the sale agreements and any ancillary related legal agreement.

IV. Delegate authority for Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the future sale of percentage shares of shared ownership homes.

V. Delegate authority for the Executive Head of Housing Services in consultation with the Executive Head of Finance to review and change the tenure of an affordable shared ownership home to affordable rented should the housing market negatively impact the sale of these homes (subject to provision of full financial information and appraisal and provided there is not a negative net revenue impact to the business plan for the scheme)

VI. Delegate authority to the Strategic Director of Place to:

i. Approve the commencement of the tender process for the demolition and construction contracts

ii. Approve the appointment of contractors following the appropriate procurement subject to the appointment being within the identified budget

iii. Approve the use of pre contract agreements with the preferred contractor to enable the development of the project and authorise spend in accordance with the budget

iv. Approve entering into the JCT Contracts (Works/Design and Build) for both demolition and delivery of new homes.

v. Approve the entering into any related contractual documentation (including collateral warranties, novation agreements, easements other ancillary agreements) relating to the delivery of the project.

vi. Approve the entering into any agreement (including paying any necessary sums provided they are within the project budget) with any utility or related provider to ensure the connection, moving, management of any services to facilitate or deliver the project.

vii. Approve entering into an agreement with Homes England should grant funding be secured from the Affordable Homes Delivery Programme (provided there is not a negative net revenue impact to the business plan for the scheme.)

VII. Delegate authority to the Executive Head of Legal and Democratic Services to approve the final form of any legal agreements including those with Homes England, utility companies and other statutory authorities.

The Executive RESOLVED to RECOMMEND to Council:

1. The approval of a Site F project budget allocation of £7,270,379m, with the delegation to Executive to approve the final budget once tender returns for the construction contract have been received.

2. The approval of an additional and specific budget of £150k to facilitate the design of Site E Ockford Ridge by the appointed contractor for Site F.

Councillor Palmer was pleased to bring forward the report to facilitate the delivery of 46 new homes. The report demonstrated the momentum of the Council to achieve the strategic priorities of its Corporate Strategy 2020-2025 and its commitments within the Affordable Homes Delivery Strategy 2022 -2025.

There being no further discussion, the Executive RESOLVED unanimously to:

Springfield, Elstead

1. Progress with Option 4 to demolish the existing accommodation and re-develop a scheme that incorporates a variety of homes of varying sizes and tenures that can accommodate different individual and local housing need.

2. Delegate authority to the Strategic Director of Place, in consultation with the Portfolio Holder for Housing (Delivery), to submit a planning application, including demolition to facilitate delivery of 26 new affordable homes.

3. Approve the sale of shared ownership homes to be delivered on the site at Springfield with the Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the final terms of such sales having regard to market value and giving the Executive Head of Legal and Democratic Services authority to approve the final form of the sale agreements and any ancillary related legal agreement.

4. Delegate authority for Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the future sale of percentage shares of shared ownership homes.

5. Delegate authority for the Executive Head of Housing Services in consultation with the Executive Head of Finance to review and change the tenure of an affordable shared ownership home to affordable rented should the housing market negatively impact the sale of these homes (subject to provision of full financial information and appraisal and that there is not a negative net revenue impact to the business plan for the scheme)

6. Delegate authority to the Strategic Director of Place to:

i. Approve the commencement of the tender process for the demolition and construction contracts

ii. Approve the appointment of contractors following the appropriate procurement subject to the appointment being within the identified budget

iii. Approve the use of pre contract agreements with the preferred contractor to enable the development of the project and authorise spend in accordance with the budget.

iv. Approve enter into the JCT Contracts (Works/Design and Build) for both demolition and delivery of new homes.

v. Approve the entering into any related contractual documentation (including collateral warranties, novation agreements, easements other ancillary agreements) relating to the delivery of the project

vi. Approve the entering into any agreement (including paying any necessary sums provided they are within the project budget) with any utility or related provider to ensure the connection, moving, management of any services to facilitate or deliver the project.

vii. Approve entering into an agreement with Homes England should grant funding be secured from the Affordable Homes Delivery Programme (provided there is not a negative net revenue impact to the business plan for the scheme.)

7. Delegate authority to the Executive Head of Legal and Democratic Services to approve the final form of any legal agreements including those with utility companies and other statutory authorities.

The Executive RESOLVED to RECOMMEND to Council

1. The approval of a project budget allocation of £10,074,928m, with the delegation to Executive to approve the final budget once tender returns for the construction contract have been received.

Ockford Ridge (Site F)

I. Progress with Option 2 to demolish the existing accommodation and re-develop a scheme that incorporates a variety of homes of varying sizes and tenures that can accommodate different individual and local housing need.

II. Delegate authority to the Strategic Director of Place, in consultation with the Portfolio Holder for Housing (Delivery), to submit a planning application, including demolition to facilitate delivery of 20 new affordable homes.

III. Approve the sale of shared ownership homes to be delivered on the site at Site F, Ockford Ridge with the Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the final terms of such sales having regard to market value and giving the Executive Head of Legal and Democratic Services authority to approve the final form of the sale agreements and any ancillary related legal agreement.

IV. Delegate authority for Executive Head of Housing Services in consultation with Portfolio Holders for Housing (Delivery and Operations) to approve the future sale of percentage shares of shared ownership homes.

V. Delegate authority for the Executive Head of Housing Services in consultation with the Executive Head of Finance to review and change the tenure of an affordable shared ownership home to affordable rented should the housing market negatively impact the sale of these homes (subject to provision of full financial information and appraisal and provided there is not a negative net revenue impact to the business plan for the scheme)

VI. Delegate authority to the Strategic Director of Place to:

i. Approve the commencement of the tender process for the demolition and construction contracts

ii. Approve the appointment of contractors following the appropriate procurement subject to the appointment being within the identified budget

iii. Approve the use of pre contract agreements with the preferred contractor to enable the development of the project and authorise spend in accordance with the budget

iv. Approve entering into the JCT Contracts (Works/Design and Build) for both demolition and delivery of new homes.

v. Approve the entering into any related contractual documentation (including collateral warranties, novation agreements, easements other ancillary agreements) relating to the delivery of the project.

vi. Approve the entering into any agreement (including paying any necessary sums provided they are within the project budget) with any utility or related provider to ensure the connection, moving, management of any services to facilitate or deliver the project.

vii. Approve entering into an agreement with Homes England should grant funding be secured from the Affordable Homes Delivery Programme (provided there is not a negative net revenue impact to the business plan for the scheme.)

VII. Delegate authority to the Executive Head of Legal and Democratic Services to approve the final form of any legal agreements including those with Homes England, utility companies and other statutory authorities.

The Executive RESOLVED to RECOMMEND to Council:

1. The approval of a Site F project budget allocation of £7,270,379m, with the delegation to Executive to approve the final budget once tender returns for the construction contract have been received.

2. The approval of an additional and specific budget of £150k to facilitate the design of Site E Ockford Ridge by the appointed contractor for Site F.

Reasons:

I. The Waverley Corporate Strategy 2020-2025 sets out the Vision and Strategic Priorities for the Council. One of the strategic priorities is to ‘provide good quality housing for all income levels.’

II. Build More, Build Better, Build for Life Affordable Homes Delivery Strategy 2022 – 2025 sets out the Council’s commitment to build homes to buy or rent for households from all income levels. The strategy has been supported by evidence studies including the Waverley Housing Affordability Study 2021.

III. To seek ensure that the Executive is up to date with the progress made with the next phase of delivery of affordable homes and request support for the development projects described in this report and Exempt Annexe 1 a – b as part of the council’s new affordable homes programme financed in compliance with the HRA Business Plan Strategic Review report and recommendations approved in December 2022.