Issue - meetings

Housing Infrastructure Fund, Routes to Good Growth - Deed of Variation for Milestones with the Grant Determination Agreement

Meeting: 13/07/2021 - Cabinet (Item 12)

12 Housing Infrastructure Fund: New Routes to Good Growth - Deed of Variation to Grant Determination Agreement PDF 160 KB

Minutes:

Background:

This report provided details of a proposal to enter into a Deed of Variation to amend the Housing Infrastructure Fund (HIF) Grant Determination Agreement (GDA). Delegated Authority to sign the GDA was granted, by Cabinet on 7 April 2020 [Decision No. 47/2020 refers]. The current proposed Deed of Variation encompassed changes to specific wording within the contract required by Homes England (HE), as well as changes to milestones within the GDA requested by the Council.

The report also sought delegated authority for any further Deeds of Variation required of a similar nature, to the Director of Place and Deputy Chief Executive in consultation with the Leader of the Council, Chief Finance Officer and Assistant Director Legal and Governance, for a period of 12 months. Similar Deeds of Variation within this timeframe would include any further changes to milestones necessary for the programme and any further administrative changes to wording within the GDA that may be required by HE.

An Exempt Appendix set out proposed changes to the Housing Infrastructure Fund Grant Determination Agreement.

Decision number:	Decision:
87/2021	The Cabinet agreed to enter into the Deed of Variation to accept the proposed changes required by Homes England, and the revised milestones proposed by the Council.
88/2021	The Cabinet agreed to delegate authority to the Director of Place and Deputy Chief Executive, in consultation with the Leader of the Council, Chief Finance Officer and Assistant Director Legal and Governance to make the relevant changes, should any similar Deeds of Variation be required.

Reasons:

Option 2 could result in the loss of £170m of capital funding, which is considered vital in supporting Medway’s future regeneration and delivering against Local Plan targets. Option 1 continues to demonstrate commitment to delivery of the £170 m HIF programme.

Delegation of authority for any similar future Deeds of Variation to the Director of Place and Deputy Chief Executive, in consultation with the Leader of the Council, Chief Finance Officer and Assistant Director Legal and Governance, within the next 12 months, would ensure timely changes can be made with HE and will not cause delay to monthly HIF grant draw down claims.