Issue - items at meetings - Housing Revenue Account Capital Programme 2015-2018

Extract from the proceedings of the Housing Committee meeting held on 14 January 2015; together with a joint report of the Interim Executive Director for Finance & Resources and the Executive Director for Environment, Development & Housing (copy attached).

That the Committee approves the HRA capital programme budget of £41.034 million and financing for 2015/16 as set out in paragraph 4.3.

141.1.     The Executive Director for Environment, Development & Housing introduced the report which sought approval for the 2015/16 capital programme and provided a provisional capital programme for 2016/17 and 2017/18 for the Housing Revenue Account.  He noted that the report had been considered and agreed by the Housing Committee at its meeting on the 14^th January.  The proposed programmes outlined the investment in housing stock and the creation of new homes which were part of the council’s corporate plan.

141.2.     Councillor Randall welcomed the report and noted that over the last four years management costs had been reduced which enabled more investment into the capital programme.  The Estate Management Board, which had cross-party representation, was working well and he hoped the recommendations would be fully supported.

141.3.     Councillor Peltzer Dunn also welcomed the report and supported Councillor Randall’s comments.  He believed it was important to remain on top of the capital programme and achieve its time-table.

141.4.  The Chair noted the comments and put the recommendations to the vote. 

141.5.  RESOLVED: That the Housing Revenue Account Capital Programme budget of £41.034 million and financing for 2015/16 as set out in paragraph 4.3 of the report be approved.

Joint report of the Executive Director for Environment Development & Housing & the Executive Director of Finance & Resources (copy attached).

(1)            That the Policy & Resources Committee be recommended to approve the HRA capital programme budget of £41.034 million and financing for 2015/16 as set out in paragraph 4.3

53.1       The Committee considered the joint report of the Executive Director Environment Development and Housing  and the Executive Director of Finance & Resources, which sought approval for the 2015/16 capital programme and provided a provisional capital programme for 2016/17 and 2017/18 for the Housing Revenue Account. The report was presented by the Head of Property & Investment (Housing).

53.2       Councillor Mears referred to paragraph 3.1.  This stated that “The HRA capital strategy aims to ensure that every pound invested reaches beyond the housing service and contributes to regeneration, tackling inequality, creating training and employment opportunities and improving sustainability.”  This concerned her as the HRA was ring fenced.  She felt that the HRA was being used as a ‘cash cow’ to supplement the general fund. 

53.3    Councillor Mears referred to paragraph 5.7 in relation to the development of extra care housing at Brooke Mead.  She wanted to know the true costs of this project.  Her view was that there should be another tendering process and that there should be a proper procurement on this scheme.

53.4    Councillor Mears referred to Appendix 1 of the report.  She stated that a more detailed list used to be provided. She considered that there was a need to see costs on the Regeneration Team.  Councillor Mears also asked how much grant was required for cladding.  

53.5    The Chair reported that lists were published this year for the lift and the cladding programme.  The Regeneration Team had provided many new homes.  (By May over 200 new homes).  The Chair felt the team functioned very well.  Meanwhile, building costs and labour costs had gone up tremendously on the Brooke Mead scheme.  The Chair felt that the council was now better at procurement than in the past.  The Homes and Community Agency were happy with the work being carried out.  The Executive Director of Environment Development and Housing confirmed that a report on costs would be submitted to the Policy and Resources Committee.

53.6    Councillor Peltzer Dunn stated that he appreciated that costs could increase but there had been a 20% increase since the last meeting.  Councillor Peltzer Dunn expressed concern about paragraph 5.7 which read “A further financial appraisal of this scheme shows that the increased costs may be met through shared ownership sales…..”   The Executive Director stressed that this issue would be addressed by the Policy and Resources Committee. The information could be reported back to Housing Committee.  He confirmed that the Policy & Resources Committee would be receiving a specific report on Brooke Mead.  The Executive Director stressed that the scheme costs could change until work began on site.  Even when work commenced there could be variations in costs.  Contingency costs would be built into the Policy & Resources Committee report. 

53.7       RESOLVED:

          That the Policy & Resources Committee be recommended to approve the HRA capital programme budget of £41.034 million and financing for 2015/16 as set out in paragraph 4.3 of the report.