Housing, Health and Environment Policy Advisory Committee

10 October 2023

Property Acquisition for 1,000 Affordable Homes Programme

Will this be a Key Decision?

Yes

Urgency

Not Applicable

Final Decision-Maker

Cabinet

Lead Head of Service

Philip Morris – Head of New Business and Housing Development 

Lead Officer and Report Author

Christopher Nixon – Development Project Manager 

Classification

Public Report with Exempt Private Appendices

The information contained within the Appendices has been considered exempt under the following paragraph of part 1 of schedule 12A to the Local Government Act 1972: -

3 = Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Public Interest Test

On applying the public interest test, the public interest in non- disclosure of the report outweighs the public interest in disclosing this information. The reasons in favour of disclosure are the public interest in ensuring value for money and the reasons against disclosure are the harm to the Councils financial position in respect of a commercial transaction. Any disclosure of such information may compromise the negotiating position of the Council. Keeping the information exempt is therefore in the public interest.

Wards affected

South

Executive Summary

The Council has an ambitious housebuilding programme that is funded via the Council’s adopted Capital Programme. This housebuilding programme encompasses homes for; Affordable Housing (AH), Private Rented Sector Housing (PRS) and on occasion a limited amount of exposure to Market Sale (MS) Housing too. The development strategy for this programme was approved by the Policy & Resources Committee in January 2022, and the proposals within this report are consistent with delivering that strategy.

Purpose of Report

For Consideration and Recommendation to Cabinet

The Housing, Health and Environment Advisory Committee make the following recommendations to Cabinet:

1.         Approve the financial returns for the proposed acquisition as shown in Exempt Appendix 3 of this report, which supports the Housing Development and Regeneration Investment Plan and overall Development Strategy, are approved.

2.         Give delegated authority to the Director of Finance, Resources and Business Improvement to:

a)     Negotiate terms for the purchase of the proposed acquisition for the sum as shown in the Exempt Appendix 3 of this report.

b)    Procure and enter into all such deeds, agreements, contracts and documents which may be required to facilitate the purchase of the site, and the subsequent redevelopment works required to deliver the scheme referred to in this report. Including (but not limited to) any related appointments such as suitably qualified consultants and a Contractor if required.

c)     Subject to satisfactory conclusion of all due diligence to negotiate and finalise and complete all legal formalities, deeds and agreements which may be required to facilitate the purchase.

d)    Negotiate and agree any lease between The Council and Maidstone Property Holdings.

3.        Authorise the Head of Mid Kent Legal Services to appoint the Solicitors required to negotiate and complete the necessary contract documentation, deeds and agreements associated with the purchase and construction works on the terms as agreed by the Director of Finance, Resources & Business Improvement.

Property Acquisition

Issue

Implications

Sign-off

Impact on Corporate Priorities

The four Strategic Plan objectives are:

·         Embracing Growth and Enabling Infrastructure

·         Safe, Clean and Green

·         Homes and Communities

·         A Thriving Place

The purchase of the homes described in this report supports the Councils Development Strategic plan in building 1,000 Affordable Homes, within the agreed capital spend of 200m.

Accepting the recommendations will materially improve the Council’s ability to achieve and support Embracing Growth and Enabling Infrastructure and Homes and Communities.

William Cornall

Director of Regeneration & Place

Cross Cutting Objectives

The four cross-cutting objectives are:

·         Heritage is Respected

·         Health Inequalities are Addressed and Reduced

·         Deprivation and Social Mobility is Improved

·         Biodiversity and Environmental Sustainability is respected

The report recommendations support the achievement of the Deprivation and Social Mobility is improved cross cutting objective by delivering a high-quality development of affordable homes.

William Cornall

Director of Regeneration & Place

Risk Management

Already covered in the risk section.

William Cornall

Director of Regeneration & Place

Financial

Monies are allocated in the capital programme for Private Rented Sector housing and provision of affordable homes. This scheme would draw upon those resources already allocated, subject to the risks set out in this report and to the initiatives described in the report to close any potential viability gap. The site will be managed by MBC and an allowance has been allocated in the Appraisal for general upkeep of the site.

Paul Holland & Adrian Lovegrove

Senior Finance Manager (Client Accountancy)

Philip Morris

Head of New Business and Housing Development

Staffing

We will deliver the recommendations with our current staffing. However, we

will employ external consultants to help facilitate and oversee the redevelopment works with the appointed contractor.

William Cornall

Director of Regeneration & Place

Legal

MBC has statutory power under section 1 of the Localism Act 2011 to do anything that individuals generally may do and under section 111 of the Local Government Act 1972 MBC has power to do anything (whether or not involving the expenditure, borrowing or lending of money or the acquisition or disposal of any property or rights) which is calculated to facilitate, or is conducive or incidental to, the discharge of any of its functions.

S120(1)(2) of the 1972 Act also enables MBC to acquire land to be used for the benefit, improvement or development of their area or for the purpose of discharging MBC’s functions.

MBC must follow its internal procurement rules as detailed in the Constitution and comply with all legal requirements as may be applicable from time to time.

Acting on the recommendations is within MBC’s powers as set out in the above statutory provisions.

 Robin Harris

(Team Leader Contentious and Corporate Governance)

Information Governance

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

Lauren McNicol & Georgia Harvey

Information Governance Team 

Equalities

The recommendations do not propose a change in service therefore will not require an equalities impact assessment

Nicola Toulson

Equalities & Communities Officer 

Public Health

We recognise that the recommendations will not negatively impact on population health or that of individuals.

Philip Morris

Head of New Business & Housing Development

Crime and Disorder

The recommendation will not have a negative impact on Crime and Disorder.

Philip Morris

Head of New Business & Housing Development

Procurement

On accepting the recommendations, MBC will then follow procurement exercises for commissioning consultancy advice to secure the works contract. We will complete those exercises in line with financial procedure rules.

Philip Morris

Head of New Business & Housing Development

Biodiversity and Climate change

Providing new affordable and market rent homes will have a significant impact on the Council’s carbon footprint and 2030 Net Zero commitment. Highly thermally efficient, low carbon heating, and climate adapted housing, as well as consideration for shared heating solutions, renewable energy, active travel, and biodiversity enhancements as part of the development strategy will ensure alignment with the Biodiversity and Climate Change Action Plan.

In line with the Biodiversity and Climate Change Action Plan, two particular actions should be considered as part of the developments:

Action 9.3 Deliver Policy that ensures sustainability criteria is used for all Maidstone Borough Council construction of new buildings (offices, housing, leisure facilities) and sustainability criteria is part of decision-making process for all Maidstone Borough Council building acquisitions, to ensure buildings owned by the council are sustainable, future proofed, and align with our net zero commitment.

Action 9.4 Establish criteria for investment in climate change and biodiversity and invest to save schemes (e.g. renewables, heat networks). These will consider relative impact in terms of carbon reduction and ease of delivery, such that expenditure is focused on deliverable, affordable initiatives that maximise impact on the carbon reduction targets.

James Wilderspoon

Biodiversity and Climate Change Manager