Issue - meetings

The Assistant Director of Housing & Community Safety to present a report which explains how the government’s decision to lift the Housing Revenue Account (HRA) borrowing cap will enable the council to embark on an ambitious programme of housing development.

Resolved:  (i)      That the proposed means of delivery of the Housing Delivery Programme (HDP) through the Housing Revenue Account (HRA) be further endorsed.

                   (ii)      That the appropriation of sites within the HDP from the General Fund into the HRA be approved in principle, noting the increased debt that will occur, with sites to be appropriated following Executive approval of individual site business cases.

                   (iii)     That the additional opportunities brought by removal of the HRA borrowing cap in respect of potential land acquisitions for new housing developments and the purchase of new affordable housing through S106 agreements be noted, with a business case to be brought to Executive for consideration when such opportunities are available.

Reason:     To accelerate the construction of much needed homes in the city, allowing the council to build more than 600 homes in the next five years, of which over 250 will be council homes and low cost home ownership tenures.

The Assistant Director of Housing & Community Safetypresented a report which set out the implications for the council of the government’s decision to lift the Housing Revenue Account (HRA) borrowing cap.

HRA debt caps had been introduced in 2012 to control overall borrowing caps and the council had been assigned a cap of £146m.  This had now been lifted, and borrowing linked to the Prudential Code.  The report outlined how, in view of the Executive’s decision on 12 July 2018 to deliver the Housing Delivery Plan (HDP) via the HRA rather than creating a separate company (Minute 16 of that meeting refers), the lifting of the cap would enable:

·        Accelerated delivery of over 600 homes across 8 sites within the HDP

·        The purchase of additional land for housing development

·        Acquisition of extra affordable housing via Planning Obligations in S106 agreements

·        Opportunities for more investment in the provision of older persons’ accommodation.

The indicative costs of and funding for the programme were summarised in paragraph 16 of the report, with further details in paragraphs 17-19.  Detailed site business cases and associated budget requests would be presented to Executive as they came forward.

The Chair thanked officers for the detail in the report, commenting that the programme would enable the best delivery of housing by the council in 40 years.

Resolved:  (i)      That the proposed means of delivery of the Housing Delivery Programme (HDP) through the Housing Revenue Account (HRA) be further endorsed.

                   (ii)      That the appropriation of sites within the HDP from the General Fund into the HRA be approved in principle, noting the increased debt that will occur, with sites to be appropriated following Executive approval of individual site business cases.

                   (iii)     That the additional opportunities brought by removal of the HRA borrowing cap in respect of potential land acquisitions for new housing developments and the purchase of new affordable housing through S106 agreements be noted, with a business case to be brought to Executive for consideration when such opportunities are available.

Reason:     To accelerate the construction of much needed homes in the city, allowing the council to build more than 600 homes in the next five years, of which over 250 will be council homes and low cost home ownership tenures.