Issue - meetings

This report recommends Council to agree to borrow additional funds to explore the purchasing of housing sites, at varying stages of development, as and when a financially viable development opportunity presents itself, following Cabinet’s consideration of the report on 7 July 2020.

Discussion:

This report provided details of a proposal to borrow additional funds to explore the purchasing of housing sites, at varying stages of development, as and when a financially viable development opportunity presented itself, following Cabinet’s consideration of the report on 7 July 2020. An exempt appendix provided a summary of development opportunities.

A Diversity Impact Assessment had been undertaken on the proposals as set out in Appendix 2 to the report.

The Leader of the Council, Councillor Jarrett, supported by the Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, proposed the recommendations set out in the report.

Decision:

The Council approved the addition of £10m to the HRA Capital Programme, in order to increase the stock of HRA affordable housing.  This funding to be met from borrowing against HRA rents, HRA reserves and Right to Buy 1-4-1 receipts or grant funding, where available.

Councillors Cooper, Johnson, Khan, Mahil, Maple, Murray and Osborne requested that their votes in favour of the decision be recorded in accordance with Council Rule 12.6.

Note: Councillors Adeoye, Hubbard and Andy Stamp were not present for the vote having declared an interest and left the meeting for the consideration and determination of this item.

Background:

This report sought approval for the Housing Revenue Account (HRA) to acquire additional housing units to meet housing needs and for Cabinet to recommend full Council to agree to borrow additional funds to explore the purchasing of sites, at varying stages of development, as and when financially viable development opportunities arise.

The report stated that the HRA was engaged with a developer in relation to two potential sites which could provide 42 new affordable rented units.  Further details relating to the two developments were provided in an Exempt Appendix to the report.

A Diversity Impact Assessment had been carried out on the proposals and was attached at Appendix 2 to the report.

Reasons:

The suggested recommendation will contribute to a number of key strategic objectives;

·        It will increase the amount of affordable rented housing that can be allocated to those that are in housing need.

·        Increasing the Council’s housing stock ensures that there is a greater supply of good quality homes that can be provided to Medway’s vulnerable children and families.

·        The additional development and/or purchase of property can be sustained by the HRA business plan.

·        The Council’s direct involvement will ensure that the units are utilised for Medway Council residents.