Housing and Community Cohesion Policy Advisory Committee

10^th of September 2024

Property Acquisition for Council House Building 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

Rachael Bennett – 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 Council’s 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

High Street Ward

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 on 19^th 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 and Community Cohesion Policy 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.

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.

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.

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.

4.   Procure and appoint a suitably qualified Planning consultant and then in conjunction with the project team and consultation with the Portfolio Holder  submit a planning application in respect of the redevelopment of the site for the preferred scheme detailed in this report and to deal with all associated planning matters.

5.   Agree, post completion of the procurement process, to appoint a contractor for the works cost detailed in the financial summary at Exempt Appendix 3. If in the event tenders for the works cost are in excess of the agreed sum, then officers will return to the Committee/Cabinet to seek further approval prior to the development itself commencing.

6.   That the Head of New Business & Housing Development will, post-acquisition of the site, use reasonable endeavours to bring forward a scheme that will include (at least) some houses and homes for social rent on a financially sustainable basis, subject to the availability of favourable Social Housing Grant funding from Homes England, in consultation with the portfolio holder.

Property Acquisition for Council House Building Programme

Issue

Implications

Sign-off

Impact on Corporate Priorities

Accepting the recommendations will materially improve the Council’s ability to achieve:

·         Embracing Growth and Enabling Infrastructure;

Homes and Communities.

William Cornall -Director of Regeneration & Place

Cross Cutting Objectives

The project will support the cross-cutting objectives:

·         Health Inequalities are Addressed and Reduced

·         Deprivation and Social Mobility is Improved

·         Biodiversity and Environmental Sustainability is respected.

William Cornall - Director of Regeneration & Place

Risk Management

Already covered in the risk section.

William Cornall -Director of Regeneration & Place

Financial

Funding for this project is included within the capital programme. The projected rate of return on the project is subject to a number of variables and additional revenue funding may need to be identified in order to complete the development.

Director of Finance, Resources and Business Improvement

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.

Philip Morris

Head of New Business and Housing Development

Legal

Under s1 of the Localism Act 2011 the Council has a general power of competence which enables it to do anything that individuals generally may do.

Under section 111 of the Local Government Act 1972 the Council 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.

The Council has the power to acquire properties by agreement under the Local Government Act 1972, section 120.

Deputy Head of Legal

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, we have completed an Equalities Impact Assessment responding to the needs of the community.

Equalities & Communities Officer

Public Health

We recognise that the recommendations will not negatively impact on population health or that of individuals.  Doing the schemes will reduce health inequalities by bolstering the supply and availability of good quality affordable housing.

William Cornall -Senior Public Health Officer

Crime and Disorder

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

Philip Morris

Head of New Business and 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 and Housing Development

Biodiversity and Climate change

Providing  new affordable 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.

Special attention is needed in regard to the implications of the following to action of the Biodiversity and Climate Change Action plan:

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.

William Cornall -Biodiversity and Climate Change Manager

All new homes will be built to the Future Homes Standards