Agenda item - New Homes for Neighbourhoods - Final Scheme approval - Wellsbourne, Whitehawk

Report of Acting Executive Director for Environment, Development & Housing (copy attached).

(1)            That the Housing and New Homes Committee approves:

i.                 The final design.

ii.               The scheme rent levels.

iii.              The estimated levels of additional investment required from the Housing Revenue Account (HRA) for the chosen rent model and delegates authority to the Executive Director of Environment, Development and Housing and the Executive Director of Finance and Resources in consultation with the Estate Regeneration Member Board to agree reasonable amendments to that subsidy if changes arise.

(2)      That the Housing and New Homes Committee recommends to Policy and Resources Committee to:

iv.             Approve that the land at Wellsbourne is appropriated to the HRA for a capital receipt of £360,000 for planning purposes and the development of new housing.

v.               Approve a budget of £7.077m for the Wellsbourne scheme in the HRA Capital Programme which will be financed through a mixture of HRA borrowing and retained right-to-buy capital receipts.

71.1    The Committee considered the report of the Acting Executive Director Environment, Development and Housing which focused on development proposals for the site at Wellsbourne, Whitehawk, which the City Regeneration team wished to progress through to planning and construction stage. Initial architectural feasibility studies were undertaken by Feilden Clegg Bradley studios (FCB).  The scheme was handed over to the in-house architectural scheme in October 2015.  The proposal was for a 29 unit (1,2, and 3 bed) three/four storey scheme that fitted comfortably below the Whitehawk Hub and new library and the context of the Whitehawk Valley. If the proposals were agreed the scheme would be presented to the Planning Committee in July 2016.  

71.2    The report was presented by the Programme Manager, City Regeneration Unit.  

71.3    Councillor Mears supported the scheme but questioned the way it was being financed.  She asked if the council was getting value for money and wanted to know what had been paid in and out of the general fund.  The Programme Manager explained that the sites had been marketed to assess their value.    The Principal Accountant explained that the general fund would receive receipts from the Housing Revenue Account. 

71.4    The Chair welcomed the scheme.  It was a sensitive build, residents were supportive and wheelchair accessible homes would be included in the scheme.  

71.5    Councillor Gibson stated that he would like to see more affordable rents explored. He proposed the following amendment which was seconded by Councillor Phillips as follows:  

            ‘2.1 iii) delete “for chosen rent model”

            Delete 2.1ii) re-number sequentially

            Add new clauses

            2.1

            iii) That officers investigate adjusting the financial model to take account of the surpluses generated from new homes high rents that will be accrued in years 40 to 60 and that any scope for using this additional income to provide some new homes at target and or intermediate rents be reported to the next Housing & New Homes Committee for a final decision on the rents levels provided by the scheme.

            iv) That officers investigate any scope provided by using the capital receipt from the sale of leasehold to the lions/and or cost savings to provide some new homes at target and or intermediate rents be reported to the next Housing & New Homes Committee for a final decision on the rent levels provided by the scheme.’ 

71.6    The Committee then voted on the amended recommendations. Members voted by 2 votes in favour and 8 against.  The amended recommendations were therefore not agreed. 

71.7    The Committee then voted on the recommendations set out in the report.  Members voted 9 in favour and one abstention for 2.1 (i).  The other recommendations were unanimously agreed. 

71.8    RESOLVED:-

(1)          That the Housing and New Homes Committee approves:

i.             The final design.

ii.            The scheme rent levels.

iii.           The estimated levels of additional investment required from the Housing Revenue Account (HRA) for the chosen rent model and delegates authority to the Executive Director of Environment, Development and Housing and the Executive Director of Finance and Resources in consultation with the Estate Regeneration Member Board to agree reasonable amendments to that subsidy if changes arise.

(2)       That the Housing and New Homes Committee recommends to Policy and Resources Committee to:

iv.           Approve that the land at Wellsbourne is appropriated to the HRA for a capital receipt of £360,000 for planning purposes and the development of new housing.

v.            Approve a budget of £7.077m for the Wellsbourne scheme in the HRA Capital Programme which will be financed through a mixture of HRA borrowing and retained right-to-buy capital receipts.