Cabinet Member for Housing and Health

 

 

Update on Local Authority Housing Fund

 

Timetable

Meeting

Expected Date of Decision

Cabinet Member for Housing and Health

28 April 2023.

 

 

Will this be a Key Decision?

 

Yes

Urgency

Urgent:

·         28-day notice requirement relating to key decision has been waived by the Chairman of the Overview and Scrutiny Committee in accordance with Rule 11.6, Part C4 of the council’s Constitution.

 

·         Call-In will be waived.

 

 

Final Decision-Maker

Cabinet Member for Housing and Health

Lead Head of Service

William Cornall, Director of Regeneration & Place

Lead Officer and Report Author

William Cornall, Director of Regeneration & Place

Classification

Public

 

 

Wards affected

All



 

 

 

 

 

Executive Summary

 

The Executive made the decision on 22nd March 2023 to participate in the Local Authority Housing Fund, and so deliver 17 units of accommodation through the scheme (15 smaller and 2 larger) in return for £2,473,597 of grant.

 

The Cabinet is minded to utilise the monies for the 15 smaller units to refurbish apartments within an existing block that it owns that is now empty as they no longer comply with the Decent Homes Standard. However, this block actually contains 20 smaller flats.

 

In the process of clarifying the eligibility of that block of apartments with the Department for Levelling Up Housing & Communities, they have offered to increase our allocation of smaller units (from 15) to 20, with the benefit of an additional £640,000 of grant monies, to now total £3,113,597. IE this offer was made so that the whole block could be put to LAHF usage, which is sensible in terms of an asset management approach. This increased offer needs to be accepted in writing by 5pm on 28th April 2023.

 

The grant monies attributable to the 20 smaller flats will be £2,560,000.

 

 

Purpose of Report

 

Decision

 

 

This report makes the following recommendations to the Cabinet Member for Housing and Health

 

1.   To instruct the Director of Finance, Resources and Business Improvement to vary the Council’s Memorandum of Understanding with the Department for Levelling Up, Housing & Communities, to increase the scale of the Council’s Local Authority Housing Funding from 17 to 22 residential units, with a pro rata increase in grant funding too; and

2.   That The Director of Regeneration and Place finalise the deployment of those monies in consultation with the portfolio holder for Housing and Health

 

 

 



Update on Local Authority Housing Fund

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

Accepting the recommendations will materially improve the Council’s ability to achieve the corporate objectives around Homes & Communities. We set out the reasons other choices will be less effective in section 3.

Director of Regeneration & Place

Cross Cutting Objectives

By supporting those who are homeless and vulnerable to have access to appropriate accommodation, which is of a decent standard the report addresses the issues of deprivation and social mobility.

Director of Regeneration & Place

Risk Management

Already covered in the risk section.

Director of Regeneration & Place

Financial

The proposals set out in the recommendation are all within already approved budgetary headings within the capital programme and so there is no need for new/additional funding for implementation of this project. The financial saving from investment in acquiring properties, in terms of reduced spend on nightly paid accommodation, means that borrowing for this purpose is sustainable.

Head of Finance

Staffing

The work towards completing any property purchases will be established using existing staff resources within the New Business & Development Team and Mid-Kent Legal Services.

 

External on-costs will be incurred in respect of delivering the program – consultants appointed for the property identification, valuation, survey.

Director of Regeneration & Place

Legal

Accepting the recommendations will fulfil the Council’s duties under the Housing Act 1996 and the Homelessness Act 2002. Failure to accept the recommendations without agreeing suitable alternatives may place the Council in breach of these Acts.

 

The Council has a general power of competence under section 1 of the Localism Act 2011 to do anything an individual can do provided it is not prohibited by other legislation.

Section 20(1)(2) of the Local Government Act 1972 enables the Council to acquire land to be used for the benefit, improvement or development of their area; or for the

purpose of discharging the Council’s

functions.

 

Acting on the recommendations is within the Council’s powers as set out in the Constitution and the statutory provisions referred to above.

 

Team Leader, Contracts and

Commissioning

Information Governance

The recommendations do not impact personal information (as defined in UK GDPR and Data Protection Act 2018) the Council Processes.

Information Governance Team

Equalities

We recognise the recommendations may have varying impacts on different communities within Maidstone. Therefore an EqIA should be considered as part of the process.

Equalities & Communities Officer

Public Health

We recognise that the recommendations will have a positive impact on population health or that of individuals.

Public Health Officer

Crime and Disorder

The recommendation will have no impact on Crime and Disorder. The Community Protection Team have been consulted and mitigation has been proposed

Head of Service or Manager

Procurement

Officers have contracts in place for external consultants to assist with the project

 

All were appointed within procedure rules.

Director of Regeneration & Place

Biodiversity and Climate Change

The implications of this report on biodiversity and climate change have been considered.

Targeting much of the grant allocation on the refurbishment of an existing residential asset will enhance the thermal performance of the Council’s residential stock overall, reducing carbon emissions in line with MBC’s Net Zero commitments.

 

Biodiversity and Climate Change Manager

 

 

2.    INTRODUCTION AND BACKGROUND

 

2.1     This update report relates only to the Local Authority Housing Fund (LAHF), and so not the Temporary Accommodation Acquisition aspect of the previous report.

 

2.2     The Council was allocated LAHF grant to deliver seventeen residential units for the scheme (15 smaller and 2 larger).

 

2.3     Through more detailed discussion with the funder, it became apparent that the monies could be utilised for the by the Council to refurbish an existing block of apartments that the Council owns, which is vacant as it no longer meets the Decent Homes Standard. However, this block contains 20 smaller units (1 & 2 bed flats).

 

2.4     Through these discussions, the Funder offered to increase our allocation for smaller units from 15 to 20, so that the whole block could be refurbished through the LAHF.

 

2.5     This is a logical approach, as the whole building could then be provided for the LAHF usage.

 

2.6     In terms of the eventual decision made by the Executive Committee in March 23 on the LAHF aspect of the report, it was as follows: -

·      The Council participate in the Local Authority Housing Fund (LAHF) in accordance with its allocation set out in the report, and for the Director of Regeneration and Place to finalise the deployment of these monies in consultation with the portfolio holder for Housing.

 

 

3.        AVAILABLE OPTIONS

 

3.1     Option 1 – Agree to increase the Council’s LAHF allocation from 17 to 22 units, with a pro rate increase in grant receivable.

 

3.2     Option 2 – Leave the Council’s LAHF at 17 units, as per the previous Executive Committee Decision in March 22.

 

 

 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1     The preferred option is option 1, as this will allow the building in question to be fully refurbished and made available to the LAHF, bringing about an increase in funding for the refurbishment and then the subsequent improved ease of housing and asset management of the block.

 

 

 

5.       RISK

5.1    There are no further risks attributed to this decision, beyond those set out in the previous report.

 

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

6.1     This report has been prepared in consultation with the Leader of the Council.

6.2     As outlined above, the Local Authority Housing Fund had been considered by the Executive at its meeting on the 22 March 2023. Prior to this, the matter had also been reviewed by the Communities, Housing and Environment Policy Advisory Committee on the 14 March 2023, with support expressed for the Council participating in the LAHF.

 

 

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1     If agreed, the Director of Finance, Resources & Business Improvement will sign the variation agreement with the funder.

7.2     As the matter is urgent, the decision would not be subject to call-in as the deadline for receipt of a variation agreement is 5 p.m. on Friday 28 April 2023.

 

 

 

8.        REPORT APPENDICES

·                    None

 

 

9.        BACKGROUND PAPERS

9.1    Report to Executive on 22nd March - your-councillors (maidstone.gov.uk)