Issue - meetings

The Director of Regeneration and Place presented his report which would finalise the strategy to enable the Council to recommence the delivery of affordable housing within the Borough.

The Committee noted that following approval from Members of this Committee and Policy and Resources Committee in November 2018 and 13 February 2019 respectively, Officers had commenced a soft market testing exercise where registered providers were approached to gauge their appetite for such a venture.  The results of which affirmed that although the registered providers were keen to work with the Council, they were content to continue receiving Section 106 contributions rather than borrowing from the Council.

In response to questions from Members, the Director of Environment and Place advised that:-

·  In order for the Council to manage its own affordable housing stock, a considerable investment was required.

·  Lending money to a smaller registered housing provider was considered to be a greater risk. 

RESOLVED:  That

1)  The creation of a Housing Delivery Partnership be delayed, pending further information relating to a garden community proposal.

2)  Officers seek direction from the Secretary of State to acquire up to 200 no. social rented homes on smaller developments (at a value of not more than £30m over the 5 year MTFS period.

3)  The services of a Registered Provider (RP), as a managing agent, be explored together with an in-house housing provider to acquire up to 200 no. social rented homes.

4)  The required financial hurdles for a positive investment decision be 5% Internal Rate of Return and a positive Net Present Value, as per the Council’s current investment criteria for private rented sector housing (for Maidstone Property Holdings).