Issue - items at meetings - Extra Care Housing - Brooke Mead Update

Extract from the proceedings of the Housing and Adult Care & Health Committee meetings held on the 13^th and 25^th November 2013, together with a Joint report of the Executive Director for Environment, Development & Housing and the Executive Director for Adult Services (copies attached).

(1)               That a capital programme budget up to a maximum of £8.3 m for the delivery of Brooke Mead extra care scheme to be financed through unsupported borrowing in the Housing Revenue Account, HCA Grant and a contribution from ASC be approved;

(2)               That it be agreed to fund up to £2.1 million (with maximum increase limited to 10%) as the ASC contribution to enable Brooke Mead to be built; and

(3)               That delegated authority be granted to the Executive Director for Adult Services, in consultation with the Executive Director for Finance & Resources, to determine whether that funding is provided from capital or revenue funding, or a mixture of the two.

84.1         RESOLVED:

(1)               That a capital programme budget up to a maximum of £8.3 m for the delivery of Brooke Mead extra care scheme to be financed through unsupported borrowing in the Housing Revenue Account, HCA Grant and a contribution from ASC be approved;

(2)               That it be agreed to fund up to £2.1 million (with maximum increase limited to 10%) as the ASC contribution to enable Brooke Mead to be built; and

(3)               That delegated authority be granted to the Executive Director for Adult Services, in consultation with the Executive Director for Finance & Resources, to determine whether that funding is provided from capital or revenue funding, or a mixture of the two.

Report of Executive Director of Environment, Development & Housing and Executive Director Adult Services (copy attached).

(1)       That the Policy & Resources Committee is recommended to agree to fund up to £2.1 million (with maximum increase limited to 10%) to enable Brooke Mead to be built.

42.1    The Committee considered a report of the Executive Director of Environment, Development and Housing and the Executive Director of Adult Services which sought approval for HCA and Housing Revenue Account (HRA) capital and HRA and Adult Social Care (ASC) revenue funding to support the Brooke Mead extra care scheme and authority to enter into a Funding Agreement with the HCA for provision of extra care housing under the Care & Support Specialist Housing Fund; and to award a contract or contract following procurement to secure the development of the scheme as outlined in the report.  

42.2    The Head of Housing Strategy informed Members that the Housing Committee had approved the report at their meeting on 13 November 2013. The scheme was subject to final planning approval at the Planning Committee to be held on 11 December 2013.  Any significant variations to the proposed capital scheme and funding would need to be reported back to Policy & Resources Committee.  

42.3    Councillor Bowden thanked the Head of Housing Strategy and his team for their work on the report and asked if 45 units was a viable economic option.   The Head of Housing Strategy confirmed that it was a viable scheme. 

42.4    The Project Officer, Housing Commissioning, informed Members that at one point, the scheme had dropped from 45 to 40 units due to planning issues.  This had led to doubts about the viability of the scheme.  However, this matter had been resolved and the scheme would have 45 units.  44 units would be one bedroom and one unit would be a 2 bedroom ground floor flat.  All would be affordable units to rent.   Originally, some two bedroom homes had been proposed for sale. 

42.5    Councillor Bowden asked if the height issue was resolved.  The Project Manager confirmed that this matter had been resolved following extensive discussions with planning officers.  Planning officers were satisfied with the scheme and would be recommending approval.

42.6    Councillor Meadows referred to paragraph 3.7 of the report and asked if the change in the proposals to have all affordable units for rent would affect the grant from the Homes & Communities Agency.  The Project Manager replied that the total grant from the HCA would remain intact regardless of the changes.   The Head of Housing Strategy confirmed that the HCA were happy with the scheme and had stated that it was possible to substitute shared ownership funding with affordable rented funding.

42.7    Councillor Mears commented that she considered that planning had made the process unnecessarily difficult.  She also commented that this was the only extra care scheme that would have no parking.  This concerned her as it was a highly congested area in the evening.   Councillor Mears stated that she had been told in the past that the scheme would lead to Adult Social Care saving £300,000 per year; however there was no mention of this in the report.  Councillor Mears further commented that there could be difficulties in only having 1 bedroom units.  Some couples did not share a bedroom and some people might need a carer to stay on site.  

42.8    The Executive Director of Adult Services reported that it was often more difficult in practice to let 2 bedroom units.  The Head of Finance – Business Engagement explained that with regard to savings, the original model was based on 39 units at £330,000 a year.  The new modelling was £330,000 to £500,000 a year based on 44-45 units. 

42.9    RESOLVED - (1)      That the Policy & Resources Committee is recommended to agree to fund up to £2.1 million (with maximum increase limited to 10%) to enable Brooke Mead to be built.

NOTE: Councillor Jones left the meeting during discussion of this item as he is Deputy Chair of the Planning Committee.

35.1    RESOLVED - That Housing Committee –

(1) Delegate authority to the Executive Director Environment Development & Housing to enter into the Care & Support Specialist Housing Fund (2013-18) Funding Agreement with the Homes & Communities Agency, the key elements of which are set out in this report.

(2) Recommend that the Policy & Resources Committee approve a capital programme budget up to a maximum of £8.3 m for the delivery of Brooke Mead extra care scheme to be financed through unsupported borrowing in the Housing Revenue Account, HCA Grant and a contribution from ASC.

(3) Delegate authority to the Executive Director Environment Development & Housing (in consultation with the Executive Director Finance & Resources) to enter into the necessary contracts (including with a development partner as necessary) to secure:

(i) the demolition of the existing building as previously agreed by Policy and Resources Committee (21 March 2013);

(ii) the design and build operations required to complete the development of the extra care housing scheme at Brooke Mead as described in this report; and

(iii) the housing management operation, in respect of the new extra care housing scheme.

35.1         The Committee considered the report of Mr G Raw, the Executive Director Environment Development and Housing on Extra Care Housing – Brooke Mead. The report was presented by Mr M Reid, Head of Housing Strategy and Development.

35.2         The Chair added that extensive discussions had taken place with Planning on the proposals. Mr Raw said that he had met with the HCA, and they had been very supportive of the scheme.

35.3         Councillor Mears noted that there were no parking spaces in the development, and was concerned that visitors would not be able to park. Councillor Mears thought the costs were high and would have liked a breakdown to have been provided. Officers said that the procurement process was still being undertaken, and more information could be provided at a later date.

35.4         Officers advised that underground parking was considered, but the cost would have been £700k and so was not feasible. There was parking in the area which could be used. There would be a loading bay, which could be used if there were visits from doctors etc.

35.5         Councillor Barnett thanked officers for the report, but was disappointed that the two bedroom flats had gone. Councillor Mears noted that the number of flats had increased and asked for reassurance that they would not be too small. Officers said architects had tried to maximise the number of units, but each one would be of reasonable size.

35.6         Councillor Peltzer Dunn noted that the Financial Implications in the report referred to 44 units, but in the report it says 45 and asked for clarification. Officers advised that there were going to be 44, but recent discussions with Planning had enabled the design to be changed to allow an additional unit which would be a two bedroom flat. The costs would be changing as the matter progressed, but the comments in the report were accurate at this stage. The Accountant confirmed that the cost of £8.3m was correct; there would be some variation but if there were any significant changes the matter would go back to the Policy & Resources Committee.

35.7    RESOLVED - That Housing Committee –

(1) Delegate authority to the Executive Director Environment Development & Housing to enter into the Care & Support Specialist Housing Fund (2013-18) Funding Agreement with the Homes & Communities Agency, the key elements of which are set out in this report.

(2) Recommend that the Policy & Resources Committee approve a capital programme budget up to a maximum of £8.3 m for the delivery of Brooke Mead extra care scheme to be financed through unsupported borrowing in the Housing Revenue Account, HCA Grant and a contribution from ASC.

(3) Delegate authority to the Executive Director Environment Development & Housing (in consultation with the Executive Director Finance & Resources) to enter into the necessary contracts (including with a development partner as necessary) to secure:

(i) the demolition of the existing building as previously agreed by Policy and Resources Committee (21 March 2013);

(ii) the design and build operations required to complete the development of the extra care housing scheme at Brooke Mead as described in this report; and

(iii) the housing management operation, in respect of the new extra care housing scheme.